Bitcoin has surged past the psychological $25,000 level, taking its December gains to almost 50%, as the 2020 bull run shows no sign of slowing.
The bitcoin price, after starting the year at around $7,000 per bitcoin, has soared through the year, climbing well past its 2017 all-time high of around $20,000.
However, even as the bitcoin price continues to climb, the chief executive of financial advisory group deVere, Nigel Green, has revealed that he has sold half of his bitcoin holdings.
“I have sold half my holdings of bitcoin as it hit an all-time high,” Green, who has been talking up bitcoin’s prospects for years, said in an emailed statement. “Why? Because it should now be treated as any other investment—that’s to say, where possible, it’s better to sell high and re-buy in the dips.”
Bitcoin selling pressure is set to increase as the price climbs and investors try to call the top of the market. With the bitcoin price now up 250% over the last 12 months, profit taking among long-time investors could drive the price down.
“The steady gains in the price of bitcoin has made the digital currency the top performing asset of 2020, up over 200%,” Green added. “As such, I felt the time was right for profit-taking.”
Green remains confident about bitcoin’s long term performance, however.
“There should be no misunderstanding about my decision to sell. It is not due to a lack of belief in bitcoin, or the concept of digital currencies—it’s profit-taking now to buy more later.”
Bitcoin’s profile has soared along with its price this year, with the coronavirus pandemic and subsequent government spending sprees putting it sharply in contrast with fiat currencies.
As a result, bitcoin has attracted the attention of a number of big-name investors who see bitcoin as an emerging safe-haven asset and inflation hedge.
British fund manager Ruffer Investment Management pushed bitcoin over the $20,000 price last week when it revealed it had bought $745 million worth of bitcoin, broadly taken as a sign of rising institutional interest.
As institutional investors and Wall Street giants “pile ever more into crypto, bringing with them their enormous expertise and capital, this in turn, swells consumer interest,” Green thinks investors will increasingly look to bitcoin as a hedge against the “legitimate inflation concern.”
Elsewhere, the bitcoin and cryptocurrency community are feeling upbeat going into 2021, many feeling vindicated by bitcoin’s performance this year.
Earlier this week, former hedge fund billionaire-turned bitcoin and crypto investor, Michael Novogratz, has said he can see bitcoin hitting $50,000 next year—predicting bitcoin will eventually “eclipse gold.”
Ray Dalio, the legendary billionaire founder and co-chairman of the world’s biggest hedge fund, Bridgewater Associates, admitted this month that bitcoin has established itself as a “gold-like asset alternative.”