Bitcoin soared to a new record above $ 33,000 on Saturday and tripled in value last year.
Investors have been attracted to the cryptocurrency with the weakening of the US dollar and with the expectation that the Federal Reserve will keep interest rates close to zero for several years, well-known names are increasing bitcoin’s appeal.
Bitcoin BTCUSD,
is expected to rise to around $ 400,000, Scott Minerd, chief investment officer at Guggenheim Investments, said in December.
Investors were attracted by the narrative that the cryptocurrency could act as a wealth reserve amid the unbridled impression of central bank money last year to boost an economic recovery from the coronavirus pandemic.
PayPal PYPL recently allowed users on its platform to buy BTCUSD bitcoin,
as well as other sister crypts like ethereum ETHUSD Bitcoin Cash and Litecoin LTCUSD. Square’s popular Cash SQ app also allows users to buy and sell bitcoins.
This is not the first bitcoin price increase. It rose in 2017, but its price dropped to just over $ 3,000 in early 2019, when China cracked down on cryptocurrency deals. It then surpassed $ 20,000 in December, rising rapidly in the previous month.
Still, Bitcoin remains a poorly traded market and the recovery in 2017 was followed by a year-long collapse of 83%.
Coinbase saw a big spike in buyer activity on Saturday, with analysts saying the trend resembles MicroStrategy’s MSTR,
Bitcoin accumulation, possibly fueled by institutional purchase orders, according to CoinTelegraph.
In the past 48 hours, Coinbase has continuously seen a high premium compared to other platforms. When the price of bitcoin exceeded $ 30,000, the prize reached $ 350.
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