Bitcoin has climbed up close to 500% making its market capitalization cross the $1 trillion mark. Presently, the price of Bitcoin is floating near $60,000, which has led many wall street entities to gamble on Bitcoin. Elon Musk’s Tesla is also among those placing wagers on Bitcoin.
From the start of 2021, cryptocurrency market capitalization has increased by three folds. Soros Fund Management’s chief investment officer (CIO) claims Bitcoin to be at an inflection point as various crypto bets are made by Soros-founded resource manager.
Dawn Fitzpatrick of Soros Fund Management communicated to Bloomberg that the infrastructure surrounding crypto intrigues the investment management firm a lot. Because they have invested in the ecosystem of cryptocurrencies, the investment firm believes that the crypto infrastructure is at an inflection point.
This month, the investment management firm has made a significant investment in crypto infrastructure entities like NYDIG and Lukka.
Fitzpatrick continued by saying that, in general, cryptocurrencies are in a significant time when we can see Bitcoin moving away from being a non-mainstream asset as the money supply increased in the US by 25%. He carried on pointing that there is a danger of government-backed currencies basing.
An increase in Bitcoin valuation from below $10,000 to $60,000 comes during an unforeseen time. The printing of currency by the central bank remains a record high in order to facilitate the loss inflicted by the pandemic to the economy.
The government’s drastic measure has triggered fear of inflation that could affect the US dollar. Prominent financier Paul Tudor Jones implied Bitcoin was the fastest horse to knock inflation the previous year, which caused the cryptocurrency market to set alight. According to Fitzpatrick, Bitcoin is capturing gold buyer base away, as, during an inflation factor, the gold failed to gain any significant kind of traction.
Nevertheless, Fitzpatrick cautioned that due to the consideration of many central banks across the world to introduce CBDCs, the potential of adopting Bitcoin could be disturbed by it. Although Fitzpatrick expressed, the damage inflicted to Bitcoin by CBDCs would be “temporary,” and the prospect of permanent destabilization of Bitcoin is far-fetched, as she does not believe in a long-lasting effect of CBDCs on Bitcoin.