Sunday, February 21, 2021
Targeting the $ 60,000 mark
Bitcoin rally never ends
Bitcoin has been climbing steeply since last autumn. The digital currency is now close to the $ 60,000 mark. There seems to be no end in sight. Other crypto currencies are also benefiting from the soaring.
The rally in most cryptocurrencies continued over the weekend. The Bitcoin rate rose to $ 58,350 on Sunday evening on the Bitstamp trading platform. That made it a little more expensive than its latest high on Saturday. Most recently, the best-known and most important cryptocurrency on the Bitstamp trading platform cost a little less again at around $ 57,200, but was still above the level on Friday and continues to target the $ 60,000 mark. At the end of the week, Bitcoin was worth more than $ 55,000 for the first time, cracking the $ 1 trillion mark in terms of total market capitalization.
In the wake of the soaring that has lasted for weeks and months, the rates of many other digital currencies such as Ethereum, Binance Coin or Polkadot are also increasing. For this reason, the share of Bitcoin in the overall market for cryptocurrencies has recently decreased somewhat despite the massive price gains. According to a list by Coinmarketcap, this was recently only a little more than 60 percent, after being a little more than 70 percent some time ago. A unit of Ethereum, the second most important cryptocurrency, was worth more than $ 2,000 for the first time on Saturday.
Bitcoin has been on a high again since autumn last year. In October, for example, the price was just $ 10,000 before rising to more than $ 20,000 in mid-December. Then in early January it crossed the $ 30,000 and $ 40,000 mark within a few days. After a consolidation phase until the beginning of February, things have been steadily improving again since then. Last week, Bitcoin was worth more than $ 50,000 for the first time.
The dazzling multibillionaire and Tesla boss Elon Musk once again provided a boost on Friday. He wrote on Twitter why cryptocurrencies were preferable to traditional currencies in his opinion. If conventional currencies were subject to negative real interest rates, only a fool would not look elsewhere, wrote Musk. He was describing the loss that many investors currently have to accept in view of extremely low interest rates and taking inflation into account.
Bitcoin reacting to Musk's tweets is nothing new. The Tesla boss is an avowed cryptocurrency fan and speaks lively on the subject, mostly on Twitter. It was recently announced that the electric car manufacturer Tesla has invested billions in Bitcoin and wants to accept the Internet currency as a payment method in the future. That gave Bitcoin an extra boost.
According to the expert Timo Emden from Emden Research, there are currently many reasons for the bull market in digital currencies. "Not only Musk should play a decisive role," he wrote in a market assessment. The rally is also being driven by investors' fear of missing out. "Private investors in particular are likely to have jumped blindly into the market in the past few hours." The climbing game seems to get out of hand again.