Bitcoin rises above $41,000 as the investors keep buys Bitcoin ignoring its volatility. No coin has ever reached or crossed the value of $41,000 apiece.
Bitcoin currently has no one else compete than itself. With the beginning of 2021, almost every single day Bitcoin is breaking its own record. On Friday Bitcoin went on to be traded for as high as $41,000 per coin. Though a night before, Bitcoin saw a drop in its value and went down to be traded for $37,000. But the rally overnight was not expected by many.
Bitcoin took a surge of around 10.3% and went as high as $41,794, round figured.
In a little over a month, Bitcoin’s value doubled and since the start of the new year, it has taken a surge of 30%. A representative of Bitstamp said that Bitcoin’s value is now 400% more than it was a year ago. The rally is creating suspicion among critics and question the sustainability of such rally. Whether Bitcoin will be able to jump back every time it drops, is a million-dollar question in the minds of critics.
The rally currently is being caused by huge amounts of finances being put in by big financial institutions and governments.
The market has seen surges of Bitcoin before following by huge nose dives lasting for a longer period. The latest one was in 2017 December, when Bitcoins approximately lost $17,000 in its value. Afterward, the cryptocurrency leader went on to being traded for as low as $3,700.
However, the supporters of Bitcoin argue that this time it would be different because of the interest of big financial institutions. They argue there might be a decline once the demand goes down but it would be nothing like 2017.
Another fact that cannot be ignored is the fear among ever people about the economic conditions of the world now. Due to Covid, everyone is certain that the regular currencies are losing their value and want to save their losses. Not only investors, but the interest of the common man has also arisen in the cryptocurrency region.
Edwar Moya, market analyst at Oanda said that investors are jumping on the crypto train with the new President. He said that crypto is attracting more interest as the government is likely to bring more stimulus for the market. He concluded that the stimulus driver of Bitcoin would not be ending any sooner. As he was certain that with Covid, the governments and banks with be more putting more financial efforts.
Chief Market analyst of the trading firm Avatrade said that the $50,000 price for Bitcoin is made real. He believed that with Bitcoin crossing the benchmark of $40,000 the chances of it crossing $50,000 are more real.
Neil Wilson of the Market.com believes otherwise. He said that this rally could be the last one before the major nose dive Bitcoin may take.