Bitcoin, currently the world’s largest cryptocurrency, reached new heights on Tuesday as it closed in on a figure of $50,000, thereby extending its already extensive rally. The cryptocurrency climbed by a significant margin of 3.6% in Asian trading to a value of $49,913.
Bitcoin’s impressive ascent this year is largely spurred by the widespread adoption of cryptocurrencies, along with headlines such as Tesla’s disclosure of a $1.5 billion purchase of the high-performing cryptocurrency.
Despite this crypto’s respectable performance on global markets, many question whether or not Bitcoin has any true intrinsic value at all given its highly-speculative nature.
One wary individual is Mike McGlone, a commodity strategist at Bloomberg Intelligence, who explained that the volatility of Bitcoin is largely expected to persist even as the currency reaches new heights. He added that a value of $100,000 may be an expectable long-term target.
Antoni Trenchev, managing partner and co-founder of London-based crypto lender Nexo, also remains wary of the wild price swings that cryptocurrencies tend to endure: “It’s important to remember that Bitcoin never moves up in a straight line,” he noted. He then warned investors to prepare for the short-term volatility that is prominent in this market.
