Cryptocurrency: Bitcoin is rising, but a contradiction remains
The cyber currency is in demand as a crisis protection. However, one step is still missing for it to be attractive to the broad mass of institutional investors, says Handelsblatt editor Andreas Neuhaus.
The Bitcoin has surged by over 20% in a week, reaching $79,000, its highest value since May. This rally may be driven by US Treasury Secretary Scott Bessent's announcement to double long-term government bond buybacks, potentially leading investors to seek alternative assets. The Bitcoin's limited supply of 21 million coins, of which over 20 million are already in circulation, is seen as a key factor in its value.
As investors view Bitcoin as a hedge against financial crises and inflation, its price may continue to rise, but its volatility and speculative nature could undermine its role as a portfolio stabilizer.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
