Bitcoin continued its scorching start until 2021, crossing $ 40,000 for the first time on Thursday.
The price was negotiated at $ 40,324, according to CoinDesk, up 14% on the day and up 38% in a year that has only seven days. The digital currency has not maintained the $ 40,000 level for long, however. It closed at $ 39,595.92, an increase of 10%.
The Bitcoin rally has been fueled in the past few days – it exceeded $ 30,000 for the first time on Saturday, then earned $ 36,000 and $ 37,000 on Wednesday, before setting three new $ 1,000 milestones on Thursday.
“Rallies like this that are promoted by FOMO [fear of missing out] by themselves, with loose logic applied afterwards, they are not sustainable, ”said Oanda analyst Craig Erlam. “But they can certainly produce extraordinary returns in the meantime.”
Bitcoin’s price has been rising for months in conjunction with stocks, emerging markets and commodity prices, as investors migrated to riskier assets in response to aggressive monetary policies enacted by central banks to combat the economic collapse caused by the coronavirus pandemic .