The most famous cryptocurrency bitcoin hits all-time high on Saturday and rose above $ 60,000 for the first time. Right after that the price of Bitcoin fell. US President Joe Biden signed a $ 1.9 trillion stimulus package to support the covid-19 economy, the market is optimistic, and expectations of broader acceptance also help bitcoin.
Bitcoin hits all-time high, but for how long?
The price of bitcoin fell below $ 50,000 at the end of February in response to the collection of profits. But later, it resumed strong growth.
“Each correction is an opportunity to reset and restart the upward movement,” Antoni Trenchev, who co-founded cryptocurrency provider Nexo in London, told Bloomberg.
What helps Bitcoins increasing price?
According to economists, Bitcoin is increasingly seen as a store of value when consumer inflation is causing the dollar to depreciate. At the same time, inflation in asset prices, such as stocks or real estate, also helps cryptocurrencies. More money is flowing into asset markets increases and even inflates the prices that set in those markets.
The Dow Jones index broke its absolute record every trading day this week, proving the current asset euphoria’s strength, which also benefits bitcoin and some other cryptocurrencies, such as ethereum.
Since the beginning of this year, bitcoin new all-time high has happened more than once, and its value, and for the first time, it is sold in crowns for more than $ 60,000. “The demand for this digital gold worldwide is still growing. In February, cryptocurrencies traded around the globe in almost double the volume compared to January.
Conclusion on Bitcoin new all-time high
Bitcoin has grown by about a thousand percent over the past year. The hype about cryptocurrencies is supported by the interest of institutional investors and speculative demand. Proponents speak of it as a store of value similar to gold, which can act as a hedge against inflation and a weaker dollar. According to opponents, there is a giant price bubble on the market, and the expansion and subsequent fall of bitcoin from 2017 and 2018 may be repeated.