Bitcoin Price May Double This Year, Standard Chartered Estimates

Trading of cryptocurrencies has increased rapidly in the last few years. There has been a strong rise in the price of Bitcoin, the largest cryptocurrency in terms of market value. The main reasons behind this are the election of Donald Trump as President in America and increasing interest of institutional investors in this segment.

included in big international banks Standard Chartered It is predicted that this year the price of Bitcoin may almost double to two lakh dollars. Even before this, Standard Chartered had predicted a rise in Bitcoin. Recently this most popular cryptocurrency had created a new high level of more than $1,08,800. Standard Chartered has said that its price will rise due to large number of purchases by institutional investors. This British bank has compared Bitcoin with gold in its analysis. It believes Bitcoin’s ability to hedge against inflation is driving its popularity among investors.

Institutional investors have invested a lot of money in spot Bitcoin exchange traded funds (ETFs). Some pension funds in America are also investing in Bitcoin. Enterprise software maker MicroStrategy made large purchases of Bitcoin for the eighth consecutive week in late December. It is the company with the largest holding of Bitcoin. MicroStrategy holds approximately 4,46,000 Bitcoins.

Recently this company had said that it can buy Bitcoin by issuing more shares this year. Last year the price of Bitcoin increased by more than 130 percent. However, questions are also being raised on MicroStrategy’s strategy of buying Bitcoin by selling shares. During the presidential election campaign in America, Donald Trump had hinted at creating a reserve of Bitcoin. However, the Federal Reserve says it does not intend to get involved in the new government’s plan to create a large stock of Bitcoin. Russian companies are using Bitcoin in their business abroad. Russia had changed the law to allow the use of cryptocurrencies to deal with the restrictions of Western countries. Russian President Vladimir Putin had said that the US government is reducing the role of the US dollar by using it for political purposes. Because of this many countries are having to turn to other assets.