Bitcoin hits highest level since Jan. 2018 amid post-election volatility
Bitcoin’s price rose to more than $14,900 on Thursday, its highest level since January 2018, amid volatility caused by the U.S. election and investor hopes that more central bank stimulus to support economies hit by the COVID-19 pandemic will push up the value of digital assets, Trend reports citing Reuters.
The biggest cryptocurrency has surged more than 10% since the day of the presidential election, with Democrat Joe Biden edging closer to victory over President Donald Trump.
Bitcoin was last trading 5.4% higher at $14,930.
World tech stocks and bond markets also extended their rally on Thursday.
“Bitcoin is the big winner from the current macro environment” said Anthony Pompliano, a co-founder and partner at cryptocurrency investment firm Morgan Creek Digital Assets. “As we saw coming out of the 2008 liquidity crisis, inflation hedge assets do very well when the Fed steps in with QE.”
The Bank of England added 150 billion pounds ($195.20 billion) to its asset purchase programme on Thursday, and the Federal Reserve is expected to signal later that it will do whatever it can to help the U.S. economy.
Bitcoin has been on an upswing over the past few weeks, after digital payments company PayPal Holdings Inc announced it would enable purchases with virtual coins on its platform.
The news bolstered long-standing expectations that bitcoin and its rivals could become a more viable form of payment, a goal that has been elusive.