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The digital currency Bitcoin did not initially continue its price rally. After steep price increases, a record high of around US $ 34,800 (€ 28,360) was reached over the weekend. However, the oldest cryptocurrency fell back significantly. On the Bitstamp trading platform, it cost around $ 32,300 in the morning.
In the past year, Bitcoin has grown tremendously in value. Throughout the year, the price has roughly quadrupled. The main reason is the generally higher interest that companies and investors show in digital currencies like Bitcoin. Also, there is an increased focus on the part of central banks, increasingly targeting their own digital currencies.
Therefore, Bitcoin supporters argue that the well-known cryptocurrency could increasingly establish itself as a serious investment alternative. Critics doubt it and point to numerous weaknesses. These include the sharp price fluctuations of digital currencies, high energy consumption during Bitcoin production (mining), and the risk of criminal abuse.
Bitcoin’s skyrocketing rise is also encouraging investors to get started with other cryptocurrencies. The second largest cyber currency, Ethereum, was up nearly 20 percent to a three-year high of $ 1,164.52. Ripple gained 16 percent at $ 0.2621.
“Now it seems the time for ‘Altcoins’ is coming,” said Emden Research analyst Timo Emden. Experts use this term to summarize the cryptocurrencies that hit the market after Bitcoin. Ethereum is also benefiting from the plans of the US futures exchange CME to offer futures contracts on this cyber currency starting in February, added Emden. This should increase the interest of institutional investors. Bitcoin futures can already be traded on CME.
Against the backdrop of the roughly 40 percent price surge in the first few days of 2021 alone, Ethereum threatened to take profits, warned Naeem Aslam, chief market analyst at brokerage AvaTrade. “Overall, the mood in the crypto market remains positive.” Experts believe that Bitcoin will take prices between $ 100,000 and $ 300,000 by the end of 2021. (dpa-afx / reuters / apa / red)
