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1. Bitcoin Tops $35,000 for Fresh Record as Wild Swings Resume  Bloomberg
2. Bitcoin soars above $35,000, hitting new high  CNBC
3. Bitcoin Trades Near All-Time High After Latest Gains  Forbes
4. There is no reason to sell. What will happen to Bitcoin and Ethereum?  Finextra
5. Bitcoin can hit $146000 as gold plays factor: JPMorgan  Fox Business
6. View Full Coverage on Google News

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Bitcoin Tops $35,000 for Fresh Record as Wild Swings Resume - Bloomberg

SINGAPORE Bitcoin's record-smashing rally seen in recent weeks was partly driven by the entry of more big, institutional investors into the market, according to PwC's global crypto leader Henri Arslanian.

The digital currency surged over $30,000 for the first time on Saturday and had advanced more than 300% in 2020, Reuters reported. On Monday afternoon in Asia, Bitcoin traded at around $32,668.93, according to CoinDesk.

The cryptocurrency has been around for a little over a decade, but it only began to rise in popularity among mainstream institutional investors last year. Crypto bulls have said that bitcoin is seen as a hedge against inflation, similar to gold.

"When you look at this bitcoin rally that we have been seeing in the last couple of weeks and months, really, there's two big elements driving it. One is the continuous entry of institutional players," Arslanian said Monday on CNBC's "Street Signs Asia."

Bitcoin's price resurgence last year was in part fueled by well-known Wall Street billionaires publicly backing the cryptocurrency. Analysts said their endorsement gave confidence to otherwise skeptical, mainstream investors. Investors such as Paul Tudor JonesandStanley Druckenmillerhave both put money in bitcoin and pointed out its potential as an inflation hedge.

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Large financial companies likePayPaland Fidelity have also made moves in the cryptocurrency while the likes ofSquareandMicroStrategyhave used their own balance sheets to buy bitcoin.

Arslanian said he expects that trend to continue over the coming months, pointing out that there are various instruments now that allow institutional players to get exposed to bitcoin. "But also there's a lot of regulated players as well. This was not the case a couple of years ago," he said.

A second development driving the current bitcoin rally is retail investors and their fear of missing out, according to Arslanian. He said a lot more people today have accounts on crypto exchanges than before as buying cryptocurrencies is easier now than before.

"With these two big elements driving it, there's a lot of momentum going on in the space. There's a lot of optimism in the crypto markets as well," he said.

Bitcoin's recent performance is reminiscent of its frenzied rally to nearly $20,000 in 2017, which was followed by a sharp pullback in 2018, wiping out billions of dollars in the market capitalization of major cryptocurrencies. But crypto fans say the current rally is different as it is driven by institutional buying rather than retail speculation.

For his part, Arslanian said one big difference between this rally and the one seen in 2017 is clarity in regulations, which was scarce back then. Today, he said, most regulators around the world have people working on crypto internally. Many of the large financial centers have "pretty good regulatory clarity on crypto markets and that is giving comfort, not only to institutional investors but also retail investors as well coming in the market," he said.

While Arslanian declined to put a price target on bitcoin for this year, he said the current momentum remains optimistic. "More than the price of bitcoin, I'm watching the number of new institutional players coming in, which I think have an outsized impact on the markets," he added.

CNBC's Ryan Browne contributed to this report.

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Bitcoin is breaking records because bigger investors are buying it now, says PwC - CNBC

There comes a point in every investors journey when he must admit he is wrong about something.In my case, I was wrong about bitcoin and whether it would ever be considered a legitimate asset class.This realization dawned on me in the last month when the price of bitcoin passed its December 2017 highs of $20,000. My prior belief was that bitcoin wouldnt surpass these highs for many years, if at all.I didnt think that bitcoin was going to zero, but I also didnt think it would eclipse its December 2017 peak anytime soon.

Nick Maggiulli is chief operating officer at Ritholtz Wealth Management and author of the Of Dollars and Data financial blog, where a version of this article first appeared.

Now that it has surpassed that peak by over 50%, I have come to realize that bitcoin isnt theone-trick ponyI thought it was. As Paulo Coelho wrote inThe Alchemist:

Well, here we are again. Bitcoin is on another spectacular bull run and investors are taking notice.Now that bitcoin has survived (and thrived) beyond its 2017 peak, many investors who used to see it as a joke are now realizing it isnt one.I am one of them.

I have changed my tune on bitcoin, but not because of many of the arguments put forth by bitcoin bulls.For example, bitcoin bulls have claimed that bitcoin would be used as a currency, that the U.S. dollar would plummet in value and thatthe halvingin May 2020 would increase bitcoins price.They were wrong on all counts, yet bitcoins price has still gone up.

What the bitcoin bullswereright about was increased adoption and the ability of many bitcoin owners to hold (HODL) even as prices rose dramatically.These two effects (more demand from buyers and reduced supply from sellers) have helped to boost bitcoins price and cement it as a legitimate asset class within the investment community.As a result, bitcoin has become a form of digital gold.You may not agree with this assessment, but if you still think bitcoin is going to zero you should reconsider your assumptions.

Story continues

Related: First Mover: As Bitcoin Rally Pauses, DeFi Keeps Astounding

The problem with arguing that bitcoin is going to zero is there are too many investors who are willing to buy it at a price far above $0.I remember speaking to many non-crypto investorsbeforethe recent run-up in price who said they wouldnt buy bitcoin at $10,000, but if it dropped to $1,000-$2,000 they would surely jump in.

Well, guess what?Now that the current price is above $30,000, some of those investors have likelyincreasedthe limit at which they would consider buying bitcoin.Instead of buying at $1,000 these same investors may be happy to jump in closer to $10,000.And every time the price goes up in the future, these mental buy limits go up as well, increasing the likelihood of bitcoins future survival.

But Nick, bitcoin doesnt have any intrinsic value!Well, guess what?Neither does gold,which has a $10 trillion market capitalization!So if you want to argue against bitcoin on intrinsic value terms, then you have to argue against gold, too. Because both the price of gold and the price of bitcoin are based around one thing and one thing alone belief, the belief that these assets will have value in the future.

See also: Pondering Durian Why >15% of My Net Worth Is in Bitcoin

And right now the collective belief in bitcoin is increasing.The cult is becoming areligion.Dont just take my word for it though.There are plenty of articles (seehere,here andhere) that discuss this increased adoption within the investment community. And if this trend continues (as it probably will), then we are evenlesslikely to see a future without bitcoin.

Now that bitcoin is here to stay, you might be wondering how it will behave in the future.Will increased adoption lead to higher prices?I have no idea!What I do know is bitcoin is a speculative asset class. Therefore, we should look at other speculative asset classes as a guide for how bitcoin might behave.And I believe there is no better speculative asset to use for this comparison than the early years of gold as an investment.

While gold has been around for millennia as a form of money, it wasnt untilAugust 1974 in the U.S.that it was an investable asset class.And in the six years following its reintroduction to the investment community (1974-1980), gold tripled in value in real terms (i.e., the yellow line below):

But since that tripling, it hasnt performed all that well.Though bitcoin is unlikely to follow a similar path to gold, it is likely to exhibit similarbehavior. This means bitcoin will continue to have huge run-ups in price followed by violent crashes that may last years (and possibly decades) in the future.We have already seen this kind of behavior from bitcoin before and I am quite confident we will see it again.

The difference between bitcoin and gold is that bitcoin is still gaining adoption among investors.

The difference between bitcoin and gold is that bitcoin is still gaining adoption among investors. Will that continue at its current pace into the future?Who knows?However, if bitcoins market capitalization were to match that of gold, it would be worth over $500,000 a coin. This is why some investors are so bullish on bitcoin.

However, there are still some reasons to be bearish.The main one is that bitcoin is associated with some of the most speculative investment activity out there.This is most apparent when comparing its price movement to the price movement of another speculative cryptocurrency dogecoin.Though you may not have heard of dogecoin, it is an alternative crypto currency (altcoin) that is kind ofan inside joke on the internet.

And since dogecoins price is aclearindicator of speculative behavior, if we look at the correlation between dogecoin and bitcoin we can get a better feel for how much speculation might be occurring in bitcoin at any point in time:

As you can see, over the last three years the correlation between dogecoin and bitcoin has been quite high, with the most recent correlation reading around 0.8.

But if we compare dogecoin to gold, we see that the correlation between their prices tends to center around 0:

This is just more evidence that bitcoin is associated with speculative activity and will continue to behave like a speculative asset in the future.

Though I have changed my mind on bitcoin, I havent necessarily changed my view on how one should invest in it. I believe the only prudent way to invest in this asset class without any long-term negative repercussions is to holdno more than2% of your portfolio in it. I wouldnt recommend this approach for everyone, but it may work for some people.By limiting your exposure to 2% of your portfolio youre unlikely to get rich, but youre unlikely to go bankrupt either.

Why 2%?This was the allocation I gotwhen I worked out the optimal portfolioback in October 2017.Anything more than 2% adds too much risk (per unit return) to your portfolio and anything less than 2% reduces your returns (per unit risk) too much.Of course, the optimal portfolio is the best solution for the past, not the future.Either way, I dont see the harm in a 2% allocation, but please do your own research first.

See also: Ajit Tripathi Why Im Long Crypto, Short DLT

The biggest risk I see to owning bitcoin going forward isnt a price crash (which is inevitable), but the possibility of a government ban on ownership.This might seem outlandish but in April 1933 the U.S. governmentbanned the ownership of gold bullion/coinagefor all U.S. citizens.The reasons for that ban are very different from a bitcoin ban that could happen today, but withthe recent Securities and Exchange Commission complaint against Ripple I wouldnt rule it out completely.

Lastly, I might be wrong on many of the things I have stated today or in the past.But I dont blog so that I can be right. I do it so I can learn more about investing and get closer to the truth.As economist John Maynard Keynes (or Paul Samuelson)supposedly said:

When the facts change, I change my mind. What do you do, sir?

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Why Ive Changed My Mind on Bitcoin - Yahoo Finance

Dublin, Jan. 06, 2021 (GLOBE NEWSWIRE) -- ResearchAndMarkets.com published a new article on the Bitcoin industry "Bitcoin Surges to Record High on its 12th Anniversary"

Bitcoin has soared to a record high following rising interest from investors and financial institutions. Bitcoin began 2021 by breaking through the $30,000 mark for the first time less than three weeks after first trading above $20,000. On Sunday, the 12th anniversary of the creation of the bitcoin network, it hit a new high of more than $34,000. Bitcoin's recent performance is reminiscent of a similar rally in 2017 which was followed by a sharp decline in 2018.

The latest rally comes as institutional investors and financial institutions show a growing interest in bitcoin, with some arguing that bitcoin can be seen as a hedge against inflation similar to gold. Large financial companies like PayPal and Fidelity have also begun to move into the cryptocurrency space which has lent confidence to claims that bitcoin is on its way to becoming a mainstream payment method. Other cryptocurrencies such as Ether have also rallied. However, some analysts remain concerned about the speculative nature of cryptocurrencies.

The article on ResearchAndMarkets.com contains a selection of reports on bitcoin such as:

To see the full article and a list of related reports on the market, visit "Bitcoin Surges to Record High on its 12th Anniversary"

Research and Markets also offers Custom Research services providing focused, comprehensive and tailored research.

Read more here:
Bitcoin Surges to Record High on its 12th Anniversary - GlobeNewswire

Bloomberg

(Bloomberg) -- Colombias government is reviewing plans to sell a stake in Interconexion Electrica SA that is attracting interest from publicly owned companies, according to people with direct knowledge of the matter.Grupo Energia Bogota is among companies considering a bid for the stake in the transmission company, while Ecopetrol SA and Empresas Publicas de Medellin could also look at the asset, one of the people said, asking not to be named discussing private matters. The government owns a majority 51.4% stake in ISA, which at current market prices could fetch $4.2 billion.President Ivan Duques administration has identified divestments as a potential source of income to narrow the fiscal deficit to 7.6% of gross domestic product this year and try to stave off the risk of having its credit rating cut to junk. The deficit widened to an estimated 8.9% in 2020 after the government was forced to boost spending to cope with the pandemic.ISA shares hit a record high in Bogota trading Wednesday, gaining as much as 3.6%, according to data compiled by Bloomberg.From time to time, news mentioning that the government wants to divest ISA reminds investors that in case that possibility materializes it would involve a chunky premium, said Daniel Guardiola, an analyst at BTG Pactual in Bogota.The sale would likely fetch a premium since it involves potential control of the company and based on previous sales of energy transmission companies in the Andean region, he said.While Finance Minister Alberto Carrasquilla has said the government wont privatize what he has called strategic assets, a sale between public companies may help meet both those criteria. The sale would send a message to ratings companies that the government is committed to meeting its fiscal targets, the person said.ISA, Empresas Publicas de Medellin and Grupo Energia Bogota declined to comment. The Finance Ministry and Ecopetrol didnt reply to requests for comment.While Ecopetrol is owned by the national government, Grupo Energia and Empresas Publicas de Medellin are controlled by regional authorities.A bidding process could be launched in the coming months, the person said, though previous attempts to sell the asset in 2019 were called off. This time however, the government needs the revenue to finance its 2021 budget.Empresas Publicas de Medellin currently owns 8.8% of ISA and Grupo Energia Bogota sold a 1.7% stake in the firm in 2017. Ecopetrol, the state-run energy producer, is advancing in renewable plans with solar energy projects.ISA, which operates energy transmission lines and highways in Latin America, has a market value of 29.4 trillion pesos ($8.6 billion), according to data compiled by Bloomberg. ISA shares have rallied 31% in the past year on Colombias Colcap index, while the local stock market overall fell 14%.(Updates with share price and analyst comment starting in 4th paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.2021 Bloomberg L.P.

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Bitcoin will make you poor! Heres how Id invest in 2021 to create passive income for life - Yahoo Finance UK