Cryptocurrency company Bitcoin nears all-time record highs. Yahoo Finance’s Dan Roberts breaks down the latest developments.
- I also want to spotlight the action we've been talking about all week, as Bitcoin inches ever closer here to those record highs that we've seen. Getting close to 19k here. I want to bring on Yahoo Finance's Dan Roberts with the latest in the incredible Bitcoin run we've seen. Dan?
DAN ROBERTS: Yeah, Zack and Akiko. I'll start by saying, as I always say, when the price is running up, that it's never really just one thing. People like to point to one headline. For example, after PayPal came out and said that PayPal will soon allow buying and holding and paying with cryptocurrency-- not just Bitcoin, but a number of cryptocurrencies. Everyone said, OK, price is rising thanks To PayPal.
That is certainly one thing that has contributed. But really, right now, there's a lot happening. There's a lot of momentum. There's been big institutional adoption over the last couple of years.
Grayscale, for example, they are frequent guests on our live shows. They just came out and said that their overall crypto assets now exceed $10 billion under management. Very interesting. They've got a number of different funds.
There's PayPal. There's Square, which of course, back in 2018, Square started allowing buying and trading of Bitcoin from its Cash App. But also, this year, Square went ahead and just invested in $50 million worth of Bitcoin, separate from Cash App, as an asset on its balance sheet.
Paul Tudor Jones, within the last six months-- a big name on Wall Street-- came out and said he's putting 1% of his portfolio into Bitcoin. And just today, the CIO of fixed income at BlackRock came out and said that he believes Bitcoin is durable, that it's here to stay.
You're hearing a change in rhetoric from a lot of these people. You're seeing institutions invest something. In many cases, just dipping a toe in. But even that fuels the idea that, even if certain firms aren't saying, boy, this is the future, we're all in, they're saying, we believe it's going to stick around, we believe it's here to stay.
Now it's also really interesting, sort of from an inside-baseball media perspective, this huge run we're seeing right now, I'd argue that it's been almost a little quiet, in sense of the media. I mean, we all remember exactly three years ago, the end of 2017, it was a frenzy of coverage. People freaking out, everyone saying, Oh, my God, what's happening here? The running joke was that everyone was talking about it with their grandparents at the Thanksgiving table. I don't think that's going to happen this time, because of COVID.
But it's a little quieter this time. And maybe, actually, arguably, that shows that people are less surprised by it. They're more aware that Bitcoin is an asset that exists. Some see it as digital gold, and there's increasing adoption by various companies.
- Dan, yeah, I agree with you. Three years ago, it was impossible to trade Bitcoin. When Bitcoin was hit 18,000, 19,000, it would take 10 minutes, 30 minutes for a transaction to clear. The costs were high.
Now it's much more organized. You got institutional involvement, as you've been talking about. Just looking at the charts here, it is up 70% over the last two months. And it looks like it's starting to go parabolic. Doesn't mean it has to finish its move anytime soon.
But I think, for some perspective, just look at the five-year chart here. We consolidated for 2 and 1/2 years. Finally broke out, and now we're getting some momentum to the upside. I have some pretty high targets to the upside, but we'll have to see how this plays out, Dan. Guys.
ZACK GUZMAN: Yeah, I mean, as we've talked about, the run up here has taken a little bit more time, too. Perhaps that's why, maybe, some media outlets have given it a little bit less coverage than last time, because it's not so sudden. But we'll see where things go.
Dan Roberts, appreciate you joining us on that.