Bitcoin rose to a new record of more than $ 33,000 on Saturday and tripled in value in the past year.
Investors were attracted to the cryptocurrency as the US dollar weakened and, given that the Federal Reserve expects to leave interest rates close to zero for several years, well-known names are added to the bitcoin call.
Bitcoin BTCUSD,
it should eventually rise to about $ 400,000, Scott Minerd, investment director at Guggenheim Investments, said in December.
Investors have been drawn to the narrative that the cryptocurrency could act as a wealth repository amid central bank money printing over the past year to boost an economic recovery from the coronavirus pandemic.
PayPal PYPL recently allowed users on its platform to buy bitcoin BTCUSD,
as well as other sister crypts such as ethereum ETHUSD Bitcoin Cash and Litecoin LTCUSD. The popular SQ Cash a Square app also allows users to buy and sell bitcoins.
This is not the first increase in the price of bitcoin. It had a rally in 2017, but its price dropped to just over $ 3,000 by early 2019, while China repressed the cryptocurrency business. Then it rose well over $ 20,000 in December, rising rapidly in the last month.
However, Bitcoin remains a thin traded market, and the 2017 rally was followed by an 83% collapse that lasted a year.
Coinbase saw a significant increase in buyer activity on Saturday, with analysts saying the trend is reminiscent of the MicroStrategy MSTR.
The accumulation of Bitcoin, possibly fueled by institutional purchase orders, according to CoinTelegraph.
In the last 48 hours, Coinbase has continuously recorded a high premium compared to other platforms. When the price of bitcoin exceeded $ 30,000, the premium reached $ 350.
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