Bitcoin soared to a new record above $ 33,000 on Saturday and has tripled in value over the past year.
Investors have been drawn to the cryptocurrency as the US dollar has weakened and with the Federal Reserve forecasting interest rates to close to zero for several years, well-known names are added to the appeal of Bitcoin.
Bitcoin BTCUSD,
it would eventually have to climb to about $ 400,000, Scott said in December, chief investment officer at Guggenheim Investments.
Investors have been drawn to the narrative that the cryptocurrency could act as a storehouse of wealth amid rampant central bank money impressions last year to bolster the economic recovery from the coronavirus pandemic.
PayPal PYPL has recently allowed users of its platform to buy Bitcoin BTCUSD,
as well as other sister cryptocurrencies such as ethereum ETHUSD Bitcoin Cash and Litecoin LTCUSD. Square’s popular Cash SQ app also allows users to buy and sell bitcoins.
This is not the first rise in Bitcoin prices. It had a concentration in 2017, but its price dropped to just over $ 3,000 in early 2019, while China cracked down on cryptocurrency companies. It then rose to $ 20,000 in December, and rose rapidly last month.
Still, Bitcoin remains a traded market and the rebound in 2017 was followed by an 83% collapse that lasted a year.
Coinbase saw a sharp rise in buyer activity on Saturday, with analysts saying the trend was reminiscent of MicroStrategy’s MSTR
The accumulation of Bitcoin, possibly fueled by institutional purchase orders, according to CoinTelegraph.
In the last 48 hours, Coinbase has continuously seen a high premium compared to other platforms. When the price of bitcoin exceeded $ 30,000, the premium reached $ 350.
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