Bitcoin price SURGE as cryptocurrency hits all-time record high - up 380% in 12 months

The world's most popular cryptocurrency is up about 29 percent since the start of 2021. And in the past 12 months has surged more than 380 percent. In a further sign of cryptocurrency's growing interest the value of the entire market, which is made up of bitcoin and other digital coins like ethereum, surpassed $1 trillion for the first time.

Simons Chen, executive director of investment and trading at cryptocurrency financial services firm Babel Finance, claimed the rally would attract the attention of asset managers and encourage them to diversify their investment portfolios. 

The finance expert also indicated crypto offered a unique alternative to traditional investments to mitigate against an uncertain geopolitical climate and inflation. 

He told CNBC: “This latest bull run in January is sure to attract the asset managers’ attention to diversify even more of their assets to crypto as they are keen on finding alternative investments, such as cryptocurrency or gold, to hedge inflation and geopolitical risks.

Mr Chen went on to say the bull run was also attracting retail investors as they looked to seize on the opportunity to make "quick, easy gains". 

READ MORE: Bitcoin price smashes $35,000 barrier for first time

He said: “A large number of retail investors have also joined the race recently as they fear to miss out on opportunities to make easy, quick gain from the latest bull run.”

But other sceptics have labelled the bitcoin price boom a bubble. 

David Rosenberg, economist and strategist at Rosenberg Research, said the "highly abnormal" rally would be short-lived.

He said: “The parabolic move in bitcoin in such a short time period, I would say for any security, is highly abnormal.”

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