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The digital currency Bitcoin continued to rise on the third day of the year.
On Sunday morning, the Bitcoin rate on the Luxembourg trading platform Bitstamp jumped to $ 34,800. Bitcoin was unable to hold the level, however, at $ 33,900, it was around five percent above the late-trading level on Saturday night. This means that the price gains add up to about $ 5,000 or 17 percent in the new year alone. In other trading venues, of which there are numerous, record levels may deviate as there are no core Bitcoin operations.
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The recent rise of Bitcoin is impressive. Starting at around $ 8,000 in early 2020, the rate initially fell to less than $ 4,000 during the first Corona wave in the spring. Then began a slow rise that accelerated sharply in the fall. Since the end of September, the price has risen more than $ 23,000 or about 220 percent.
Bitcoin is the oldest and by far the best known digital currency. Experts had recently estimated the market capitalization at around $ 600 billion. There is no adequate reason for Bitcoin’s surge to the current high shortly after the turn of the year. However, for the latest surge, the market repeatedly claims that the digital currency has recently moved more into the focus of large financial investors and is in higher demand.
Above all, the announcement of the PayPal payment service that it would allow its customers to pay with Bitcoins resulted in a huge increase in demand. Interest in digital currencies is also increasing due to the corona pandemic and the associated sharp increase in national debt. Therefore, some investors fear an increase in inflation in the medium and long term, against which they want to protect themselves with alternative investments.
However, experts also warn of extreme price fluctuations in Bitcoin. Three years ago, the rate of the digital currency collapsed to around 70 percent in no time. However, there is currently little indication of this skepticism. On Saturday alone, Bitcoin jumped four thousand marks, so according to expert Tilo Emden, the 30,000 mark was the main responsible for the rapid rise in prices.
“Mastering the $ 30,000 mental mark should also have fueled the recovery,” he wrote in a short study Saturday night. “Rising price levels are attracting private investors who have long waited on the sidelines and flirted with commitments. Market participants waste no time thinking about the risks and side effects of the highly volatile asset class. Because the bull market feeds almost entirely on its own. ” Investors are in a rush and yearn for new records.
“At the beginning of the new year in particular, investors are trying to strategically prepare for 2021. In light of the coronavirus pandemic that is still rampant on both sides of the Atlantic, investors are looking for investment ports that are supposed to promise stability. “Emden said. Obviously, this also includes Bitcoin. “For most investors, the crypto thaler continues to be the answer to the ultra-loose monetary policy of the world’s largest central banks. Dollar risks are increasing worldwide; the flight to alternative asset classes could accelerate again in the new year. “
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FRANKFURT / LUXEMBOURG (international awp)
