Russ Mould, investment director at brokerage AJ Bell said: “Gold reached a new all-time high in 2020 and bitcoin has set a string of new peaks, more than trebling in the second half of the year to pass the $28,000 mark for the first time.”
“Some will argue that there is more to come from both gold and bitcoin, especially if governments keep piling up debts and central banks do their best to fund that borrowing through the backdoor with quantitative easing, zero interest rates, and bond yield manipulation, thanks to their scarcity value relative to cash,” Mould added.
Many analysts started calling Bitcoin the 21st century’s gold. Bitcoin has been growing even though the stock market was plunging amid the COVID-19 pandemic, and the U.S. dollar’s weakness gave an unfair advantage to the cryptocurrency making it a go-to destination for new and established investors. However, Bitcoin’s 2020 rally is very similar to that of 2018, which ended up dramatically with the cryptocurrency plunging to $3000 by early 2019.
