Just a few weeks after shattering its years-old aspiration to reach $ 20,000, Bitcoin is back at it. On Saturday, the cryptocurrency passed $ 33,000 worth, according to CoinDesk, before light diving throughout the day.
Bitcoin’s new earnings are a historic record for the currency, an astonishing change given where it was almost a year ago. In March, Bitcoin lost 50% of its value in two days, falling below $ 4,000, reflecting volatility on Wall Street in the early days of the pandemic. However, the most important cryptocurrency in the world closed the year with an increase of over 300%, on CoinDesk. At the time of publication of this blog, it had increased by 10.62% in the last 24 hours and had a market ceiling of 605 billion dollars.
However, as I said earlier, this is not meant to be an encouragement to go out and buy Bitcoin. (Given that we are currently in a global health crisis, please do not use the savings earned to buy Bitcoin). The cryptocurrency is famous and in recent years it has generated as many emotions desperately.
Case in point: in 2017, the last time Bitcoin reached $ 20,000, it lost more than 80% of its value the following year.
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Bitcoin has undoubtedly benefited from increased oversight, such as creation FICO cryptocurrency risk assessment solution for banks, as well as more investment and institutional support. In November, the Guggenheim MacroOpportunities Fund announced that it could try to invest up to 10% of its funds Net assets value in Bitcoin. PayPal also offered Bitcoin and other currencies last year, when it announced it would do so accept cryptocurrencies for online payments and also allows its users buy, sell and hold cryptocurrency.
Other investment power players, such as Rick Rieder, global fixed income investment director at BlackRock, the world’s largest asset manager, said Bitcoin is “here to stay” and has the potential to replace the gold. That being said, starting with November Rieder had not added Bitcoin to any of its investment portfolios.
The new Bitcoin record has caused a stir, with some financial experts saying it is on its way to grow even more. Others disagreement and says it’s much too expensive, possibly more than 50%, and that its real fair value is about $ 12,000.