Bitcoin rose to a new record high of more than $ 33,000 on Saturday and has tripled in value over the past year.
Investors are attracted to the cryptocurrency because the US dollar has weakened, and because the Federal Reserve is expected to keep interest rates close to zero for a few years, well-known names are contributing to bitcoin’s attractiveness.
Bitcoin BTCUSD,
should eventually climb to about $ 400,000, Scott Minerd, chief investment officer of Guggenheim Investments, said in December.
Investors are drawn to the narrative that the cryptocurrency has been able to act as wealth over the past year amid unbridled money printing to bolster the economic recovery of the coronavirus pandemic.
PayPal PYPL recently allowed users on its platform to buy bitcoin BTCUSD,
as well as other sister scripts such as ethereum ETHUSD Bitcoin Cash and Litecoin LTCUSD. With Square’s SQ-popular Cash app, users can also buy and sell bitcoins.
This is not bitcoin’s first price increase. It had a rally in 2017, but the price dropped to just over $ 3,000 by early 2019 as China made an increase in cryptocurrency businesses. It then rose above $ 20,000 in December and has risen rapidly over the past month.
Bitcoin remains a thinly traded market and the boom in 2017 is followed by a 83% collapse that lasted a year.
Coinbase saw a sharp increase in copper activity on Saturday, with analysts saying the trend was reminiscent of MicroStrategy’s MSTR.
Bitcoin accumulation, possibly fueled by institutional buying orders, according to CoinTelegraph.
Over the past 48 hours, Coinbase has consistently seen a high premium compared to other platforms. When the price of bitcoin exceeded $ 30,000, the premium reached as high as $ 350.
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