Bitcoin price surges in the face of fresh warnings from Berkshire Hathaway
Bitcoin dominance reaches a 30-month low as it recovers slower than most of the top 100 cryptos by market cap, following last week’s crash.
- Bitcoin is up nearly 20% this week following last week’s crash.
- Bitcoin’s dominance index is currently down to around 44%, its lowest since 2018.
- Berkshire Hathaway vice chair Charlie Munger recently referred to Bitcoin as a “disgusting” investment tool.
After dipping to a relative low of $47,409 on April 26th, Bitcoin, the world’s largest cryptocurrency by total market capitalization, has continued to mount an impressive comeback, currently trading at $55,470. As a result, the digital currency is showcasing gains of nearly 20% over the past week.
Between April 22nd and 26th, BTC was faced with a lot of bearish pressure, struggling to stay afloat above the $50,000 mark with any sort of stability. Since then however, the currency has gained solid upward momentum once again, trading as high as $58,700 a few days back.
As a result of these price movements, the total market capitalization of the cryptocurrency industry has once broken past the $2 trillion mark with ease, with the figure currently sitting at $2.34 trillion.
A closer look at the matter
Bitcoin’s latest value surge seems to come at a time when MicroStrategy CEO Michael Saylor announced that, as a result of his company’s foray into Bitcoin last year, its overall revenue for the quarter has spiked 52% as compared with Q1 2020.
To date, Saylor’s company has purchased a total of 91,579 BTC (estimated to be worth $5+ billion) while players like Tesla and Square have made similar large acquisitions.
Thanks to this rising institutional adoption, it stands to reason that more private players may start to add Bitcoin to their balance sheets in the coming months. This may be partially because it serves as a tangible means of combating inflation — which has spiked due to all the money-printing activities that have taken place worldwide over the last 12 months — as well as attracting new investors.
BTC’s dominance index has continued to decrease since the beginning of 2021. As can be seen from the chart below, Bitcoin’s dominance lay north of the 70% mark at the start of the year. However, since the beginning of April, the number has continued to dip and is currently sitting below the 50% mark.
Bitcoin’s Dominance Index since 2017 (source: CoinMarketCap)
Charlie Munger calls Bitcoin a “disgusting” investment product
Even though a growing number of traditional finance players have continued to embrace Bitcoin, billionaire Charlie Munger, vice chair of Warren Buffett’s Berkshire Hathaway conglomerate, made it known recently that his disdain for the digital currency is still alive and well.
As part of an annual shareholders meeting that was streamed live recently, Munger was quoted as saying he “hates Bitcoin’s success” and that he can never get behind an asset that kidnappers and extortionists use, adding:
“Nor do I like just shuffling out a few extra billions and billions and billions of dollars to somebody who just invented a new financial product out of thin air. The whole development is disgusting and contrary to the interest of civilization.”
Disclosure: The author owns a range of cryptocurrencies at the time of writing