Within weeks of breaking its year-long aspiration to reach $ 20,000 worth, Bitcoin is back. On Saturday, the cryptocurrency spent $ 33,000 in value, according to CoinDesk, before dropping slightly over the course of the day.
Bitcoin’s new gains represent a historic record for the currency, an impressive turnaround considering where it was almost a year ago. In March, Bitcoin lost 50% of its value in two days, dropping to less than $ 4,000, reflecting volatility on Wall Street during the early days of the pandemic. However, the world’s leading cryptocurrency ended the year with an increase of more than 300%, for CoinDesk. At the time of publishing this blog, it had increased 10.62% in the last 24 hours and had a market value of $ 605 billion.
However, as we already said, this is not an incentive to go out and buy Bitcoin. (Considering that we are currently in a global health crisis, please don’t use your hard-earned savings to buy Bitcoin). Cryptocurrency is notoriously temperamental and, in recent years, has provided as much excitement as despair.
Case in point: in 2017, the last time Bitcoin came close to $ 20,000 in value, it lost more than 80% of its value in the following year.
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Bitcoin undoubtedly benefited from increased supervision, such as the creation of FICO cryptocurrency risk assessment solution for banks, as well as more investment and institutional support. In November, the Guggenheim Macro Opportunities Fund announced that it could seek to invest up to 10% of its liquid assets Bitcoin value. PayPal also approved Bitcoin and other currencies last year when it announced that accept cryptocurrency for online payments and also allow your users buy, sell and maintain cryptocurrencies.
Other powerful investors, like Rick Rieder, director of global fixed income investments at BlackRock, the world’s largest asset manager, said that Bitcoin was “here to stay” and that it had the potential to replace gold. That said, from November Rieder has not added Bitcoin to any of his investment portfolios.
Bitcoin’s new record has caused a stir, with some financial experts saying it is on its way to increase further. Others I disagree and say that it is very expensive, possibly more than 50%, and that its real fair value is about $ 12,000.