FOREX-Bitcoin breaks $20,000 for first time, Switzerland named currency manipulator
Suzanne Barlyn, 16 December 2020
Bitcoin smashed through $20,000 for the first time on Wednesday while the Swiss franc gained after the U.S. Treasury labelled Switzerland a currency manipulator.
Bitcoin last jumped 6.9% to move as high as $20,651. The cryptocurrency has gained more than 170% this year, buoyed by demand from larger investors attracted to its potential for quick gains, purported inflation-resistant qualities, and expectations it will become a mainstream payment method.
“The latest run to $20,000 hasn’t been accompanied by nearly the amount of hype as there was back in 2017,” said Paul Hickey, co-founder of Bespoke Investment Group. Bitcoin then garnered more interest from retail investors, but some may now be leery after getting burned, Hickey said.
The Treasury, also on Wednesday, said that through June 2020 both Switzerland and Vietnam had intervened in currency markets to prevent effective balance of payments adjustments. It is not surprising that the Trump administration might make a case about currency manipulation, given recent “runaway appreciation” of the Swissy,
The Swiss Franc was last at 0.8844, with the dollar down 0.12% against the currency on the day. The Swiss government, on Wednesday, said it is open for bilateral talks with the U.S. Treasury about the currency manipulation issue.
Strong euro zone survey figures and hopes of progress on Brexit negotiations pushed the euro above
$1.22 against the U.S. dollar on Wednesday for the first time since April 2018, but later notched
downward.
