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- The value of the digital currency Bitcoin plunged for the first time on Monday morning after a price rally over the weekend. In the afternoon, the course is already recovering significantly.
- After strong price increases, the weekend reached an all-time high of around $ 34,800.
- On the Bitstamp trading platform, the cryptocurrency costs less than $ 29,000 in the morning. By 4 pm the exchange rate was already above $ 32,000.
- Bitcoin lost about four percent in 24 hours. Weekly, there is an increase of more than 19 percent.
Strong exchange rate fluctuations are anything but unusual for digital currencies. In 2020, Bitcoin continued to fall after some drastic price increases. The reasons for this may be different. Profit making is often cited. However, critics see the discontinuity of Bitcoin as evidence that the original crypto currency is not suitable as a means of payment and financial investment.
Regardless of this, Bitcoin has gained tremendous value in the last year. Throughout the year, the price has roughly quadrupled. The main reason is the generally higher interest of companies and investors 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. In addition to strong price fluctuations, these include high energy consumption during Bitcoin production (mining) and the risk of criminal abuse.
Profit from other cryptocurrencies
With Bitcoin, other cryptocurrencies have also posted price gains in recent days following the sharp rise. Above all, the blockchain’s second largest currency, ether, has risen by more than a third in value in a week and is currently trading at around $ 1,040 after breaking the $ 1,100 mark.
Meanwhile, the market capitalization of the entire crypto market has risen again in the last seven days. According to the online portal “CoinGecko”, it currently stands at around $ 845 billion, making the cryptocurrency market 150 billion heavier in a week.
