Bitcoin surges to three-year high amid US election count row and coronavirus lockdown turmoil
BITCOIN has surged to a three-year high amid the US election count row and the coronavirus lockdown turmoil.
The cryptocurrency is trading at more than $15,000, three times the value in March.
It is only $5,000 short of the all time high it recorded in late 2017 before the bubble burst.
Analysts say the surge is a result of geopolitical and economic uncertainty stemming from the coronavirus pandemic and the US elections as the world waits for a winner.
Other cryptocurrencies including Ethereum, Ripple and bitcoin cash all saw a rise between 4 and 10 per cent.
Bitcoin’s nine percent growth in the last 24 hours follows a steady gain over October for the world’s premier cryptocurrency, according to The Independent.
Antatoliy Knyazev, co-founder of investment firm Exante said: “In the last six months, bitcoin has steadily revealed its profitability.
“When compared to other similar asset, bitcoin has been burgeoning.
He added that though it saw a value drop in March, it has since “added over 200 per cent to its value in recent months.”
According to Simon Peters, an analyst at online trading platform eToro, stimulus packages by governments in response to coronavirus could have a significant impact by continuing its rise.
He said: “Bitcoin’s creation was in part due to fears that increased fiscal stimulus is devaluing currencies globally.
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“As a result, when central banks announce extensive plans to pump money into economies, many investors in the crypto community take this as a major bitcoin buy signal.”
He continued: “With the US election gradually drawing to a close, the details of a fiscal stimulus could become clearer.
“Any such package could see weakening of the US dollar and further increases in the bitcoin price going forward.”
