Following a minor fall earlier this month, the bitcoin price has shot back up, peaking at just under $62,000.
This brings the crypto currency’s gains in the past 12 months up to a huge 650%, despite ongoing volatility and several substantial pullbacks.
Many investors are already seeking to put the rise down to the relentless desire of central banks to print more money in a bid to stimulate world economies in the wake of COVID-19.
Despite some early resistance from the Republican Party, on March 11th President Joe Biden signed a new $1.9 trillion COVID-19 relief package into law, signalling that there would be no end to market stimulus in the near future.
Bitcoin is seen by many investors as a digital asset with potential ‘safe haven’ status – from an artificially inflated financial system, so to see the crypto shoot up in the wake of the announced stimulus won’t come as a surprise to some.
Many analysts believe the inflation rate will react by going past the FEDs 2% target, and could even reach 3%.
Naturally, some investors are on edge, wary of the impact a rise in interest rates would have on the bond market.
As a result, this may be just the start of further rises for bitcoin over the next year or so, with the crypto now passing through $60,000 and beyond.
One dissenter, though, is veteran fund manager Mark Mobius.