Bitcoin price rises above $ 33,000, the highest ever

Bitcoin (XBT) tripled in value during 2020, and grew steadily, even as the stock market declined in the early days of the pandemic. Investors have been drawn to it, as well as other cryptocurrencies, as the US dollar has weakened.

With the expectation that the Federal Reserve will leave interest rates close to zero for a few more years, bitcoin can still win fans.

Famous names contribute to bitcoin’s mainstream appeal. Rick Rieder, Chief Investment Officer for Fixed Income BlackRock (BLK), said the digital currency could replace gold. Payment giant PayPal (PYPL) adopted bitcoin, after being reluctant to do so.

This is not bitcoin’s first price increase. It hit a strong run in 2017, reaching a record high of more than $ 20,000. But the price has dropped in early 2019 to just over $ 3,000 as China continued to suppress cryptocurrency businesses. It then rose again in May 2019 to $ 8,000. It rose more than $ 20,000 in December and has risen rapidly over the past month.

Bitcoin experts remain bullish on the currency.

“If any asset rises rapidly in price for a long time, I become cautious, and I want to appeal to someone who trades BTC not to get caught up in the euphoria,” said Nicholas Pelecanos, head of trading at however, the cryptocurrency firm NEM, said it predicts that bitcoin could rise to $ 50,000 by Valentine’s Day. “I believe we are just at the beginning of a big bull market.”

Due to the decentralized and anonymous nature of the currency, it can be difficult to get money back after losing it in a scam as there is no central government (like a bank) to intervene. Decentralization and anonymity have made cryptocurrency a favorite for scammers, albeit appealing to technologists and investors.