Sustained soaring: Bitcoin cracks the 30,000 dollar mark for the first time

Saturday, January 02, 2021

Persistent soaring
Bitcoin breaks the $ 30,000 mark for the first time

In recent years, Bitcoin has suffered from extreme price fluctuations. The rate of the digital currency collapsed by around 70 percent in a short time. For about a year now, however, it has been experiencing a rise. Now the value has even risen to more than $ 30,000 for the first time.

The digital currency Bitcoin continues its record hunt in the new year. In the afternoon, the Bitcoin price rose for the first time in its history to $ 31,502.77 (just under 26,000 euros). This was announced by the financial news agency Bloomberg, citing data from several trading platforms. Bitcoin has thus increased in price by another 2,000 dollars or seven percent since the beginning of the new year. On other trading venues, of which there are numerous, the record levels can deviate as there is no central Bitcoin trading.

Bitcoin's recent soaring is breathtaking. Started at around $ 8,000 at the beginning of 2020, the rate initially fell to less than $ 4,000 during the first Corona wave in the spring. Then began a slow increase that accelerated sharply in the fall. Since the end of September, the price has climbed by more than $ 20,000, or almost 190 percent. When trading started in February 2009, the first decentralized cryptocurrency was only worth a few cents.

PayPal helped to new heights

Bitcoin is the oldest and by far the best-known digital currency. Experts had recently estimated the market capitalization at around 550 billion dollars. There is no suitable reason for the rise in Bitcoin to the current record high shortly after the turn of the year. For the latest soaring, the market repeatedly cites that the digital currency has recently moved more into the focus of large financial investors and is in greater demand.

In particular, the announcement by the payment service PayPal that it would allow its customers to pay with Bitcoins on October 21, 2020 resulted in an enormous surge in demand. Interest in digital currencies is also being increased by the corona pandemic and the associated sharp rise in national debt. For this reason, some investors fear rising inflation in the medium to long term, which they want to hedge against with alternative investments. However, experts also warn of the extreme price fluctuations in Bitcoin. Three years ago, the rate of the digital currency collapsed by around 70 percent in a short time.

The idea behind the digital currency is a currency that exists independently of states, central banks and monetary policy. Unlike traditional currencies, digital means of payment are not controlled from a central point, and bookings do not have to be confirmed by a central point.