The dominant crypto, Bitcoin, has been on a tear over the last six months, rising about 500% amid a bull market that’s made the cryptocurrency a $1 trillion asset.
The bitcoin price, now hovering close to its all-time highs of about $60,000 per bitcoin. The most famous cryptocurrency has risen as Wall Street giants, and firms including Elon Musk’s electric car company Tesla make big bets on BTC.
The broader cryptocurrency market nears $2 trillion, up almost 3x since the beginning of 2021. Significantly, the chief investment officer of Soros Fund Management has announced bitcoin is at an inflection point following a number of crypto infrastructure bets by the George asset manager.
According to Soros Fund Management’s Dawn Fitzpatrick, the whole infrastructure around crypto is interesting. They said they have been making some investments into that infrastructure.
In March, Soros Fund Management has invested in crypto data provider Lukka and Bitcoin financial services firm NYDIG.
Measures sparked concerns a wave of inflation could be about to hit currencies
Bitcoin increased from under $10,000 per bitcoin this time last year to about $60,000 today. It has to be mentioned that the rally comes amid unprecedented central bank money-printing and government stimulus measures to balance the economic harm done by the COVID-19 pandemic.
Another essential thing to mention is that these measures sparked concerns a wave of inflation could be about to hit the American dollar and other currencies.
On March 31, the U.S. dollar reached a one-year high against the yen and multi-month peaks with other currencies. The rise was prompted by investors bet that fiscal stimulus and aggressive vaccinations will help America lead a global pandemic rebound.
However, Fitzpatrick warned that the bitcoin-inspired central bank digital currencies, that are in development around the world, could be a potential threat to the adoption of the largest cryptcurrency and other cryptocurrencies. However, she remains upbeat in the long-term.