Bitcoin continued its flashy start to 2021 and crossed $ 40,000 for the first time on Thursday.
The price traded up to $ 40,324, according to CoinDesk, up 14% on the day and up as much as 38% on a seven-day-old year. However, the digital currency did not hold the $ 40,000 level for long. It rose to $ 39,595.92, up 10%.
Bitcoin’s rally has been turbocharged over the past few days – crossing $ 30,000 for the first time on Saturday and then driving through $ 36,000 and $ 37,000 on Wednesday before setting three new $ 1,000 milestones on Thursday.
‘FOMO-like events like this [fear of missing out] alone, with loose logic applied later, is not sustainable, ”said Craig Erlam, an analyst at Oanda. “But they can definitely deliver extraordinary returns in the meantime.”
Bitcoin’s price has risen for months in conjunction with stocks, emerging markets and commodity prices, as investors flocked to riskier assets in response to the aggressive monetary policy put in place by central banks to combat the economic collapse caused by the coronavirus pandemic.