Thursday December 31, 2020
Price doubling since November
Bitcoin worth over $ 29,000 for the first time
The price of the digital currency Bitcoin has been climbing rapidly to new heights since November – on New Year's Eve it now briefly reached a record high of over 29,000 dollars. Past experience shows, however, that things can go downhill just as quickly.
The digital currency Bitcoin rose above $ 29,000 for the first time on New Year's Eve. During the night, the price on the Luxembourg trading platform Bitstamp hit a new record high at $ 29,292. At noon, Bitcoin fell back a little, trading at $ 28,983. Bitcoin has been skyrocketing since the beginning of November. During this time, the price has more than doubled.
Bitcoin is the oldest and by far the best-known digital currency. Experts had recently estimated the market capitalization to be around $ 500 billion. There is no suitable reason for the rise in Bitcoin to the current record high shortly before the turn of the year. For the latest soaring, however, the market repeatedly states that the digital currency has recently moved more into the focus of large financial investors and is in greater demand.
In particular, the announcement of the payment service PayPal that it would allow its customers to pay with Bitcoins resulted in an enormous surge in demand. However, experts also warn of the extreme price fluctuations that can be observed time and again with Bitcoin. Three years ago, the rate of the digital currency collapsed by around 70 percent in a short time.
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