A few weeks after breaking its years-old aspiration of reaching $ 20,000 in value, Bitcoin is once again making it. The cryptocurrency passed on Saturday $ 33,000 of value, according to CoinDesk, before submerging slightly throughout the day.
Bitcoin’s new gains represent an all-time high for the currency, an impressive change considering where it was almost a year ago. In March, Bitcoin 50% lost of its value in two days, falling below $ 4,000, reflecting Wall Street volatility during the early days of the pandemic. Still, the world’s leading cryptocurrency closed the year up more than 300% CoinDesk. At the time of publication of this blog, it had increased by 10.62% in the last 24 hours and had a market capitalization of $ 605 billion.
However, as we said before, this is not meant to be an incentive to go out and buy Bitcoin. (Given that we are currently in a global health crisis, do not use your savings earned to buy Bitcoin). The cryptocurrency is famous and, in recent years, has generated as much excitement as it has despair.
Case Study: In 2017, the last time Bitcoin reached nearly $ 20,000 in value, it lost more than 80% of its value the following year.
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Bitcoin has certainly benefited from increased oversight, such as the creation of the FICO cryptocurrency risk assessment solution for banks, as well as more investment and institutional support. In November, the Guggenheim MacroOpportunities Fund announced that it could try to invest up to 10% of its fund net assets value in Bitcoin. PayPal also awarded Bitcoin and other currencies last year when it announced it would accept the cryptocurrency for online payments and also allow its users buy, sell and maintain cryptocurrencies.
Other investor power actors, such as Rick Rieder, global fixed income investment director at BlackRock, the world’s largest asset manager, said Bitcoin was “here to stay” and had the potential to replace gold. That said, from of November Rieder had not added Bitcoin to any of its investment portfolios.
The new Bitcoin record has caused quite a stir, with some financial experts saying it is on its way to increase even more. Others disagree and let’s say it’s overpriced, possibly at over 50%, and its real fair value is about $ 12,000.