Bitcoin prices hit a three-year high with the market value going over $17,000.
Bitcoin, the world’s first and most popular cryptocurrency, has gained a sudden interest of investors. The cryptocurrency market is facing an impactful volatility period due to the pandemic. The market value of Bitcoin increased more than 7% to $17,891 on 18th November, beating its previous record which was set in December 2017.
The cryptocurrency has faced a lot of volatility since it was launched in 2009. Analysts suggest that the sudden interest of investors in the cryptocurrency can be attributed to the pandemic-driven market volatility.
Talks of the pandemic encouraging the reassessment of the Bitcoin market value in the future are being held. Investors have a new outlook on the future on the potential in the market value of various cryptocurrencies.
Due to the pandemic-driven volatility, even the most stable stocks of gold have been disordered so investors are looking into different options. The cryptocurrency is being viewed as a “safe haven” like cash or gold during. Investors remove their shares from stocks and move them to the stated safe havens during times of high volatility.
The limited supply of Bitcoin which is set at 21 million makes it one of the most desired stocks. The market value of limited supply stocks is a top choice among investors. Investors believe that the lack of liquidity of the cryptocurrency keeps it shielded from inflations.
However, experts warn investors to be careful with trusting the current market value as the value of Bitcoin fluctuates very frequently at drastic levels.
The interest in Bitcoin also increased when PayPal decided to allow its customers to buy and sell Bitcoin and other cryptocurrencies. The customers can engage with over 26 million businesses that buy and sell cryptocurrencies and accept PayPal payments. The initiative by PayPal allows for easy accessibility to the trade of Bitcoin which had gained the interest of many investors.
Experts inform investors about high chances of increased volatility in the market as more investors flock to Bitcoin and other cryptocurrencies.