Saturday March 13th 2021
The crypto market has no break
Bitcoin cracks the next magic mark
For this summit storm, crypto investors only warmed up briefly: A Bitcoin costs more than 60,000 dollars for the first time. In euros, the 50,000 mark falls at the same time. One reason for the price gains is likely to be the rampant fears of inflation.
Bitcoin has continued its record hunt with a new high. On Saturday, the US $ 60,000 mark was briefly broken. At the same time, the Bitcoin also exceeded the 50,000 euro mark for the first time.
Not only Bitcoin, other digital currencies also continued to grow. Ethereum, the second largest crypto value after Bitcoin, approached its record high of $ 240 in mid-February at $ 1,880. One reason for the price gains on the crypto market is likely to be the good mood on the stock markets. Analysts point to the lush US stimulus package. The rise in inflation also plays a role in this context. Bitcoin is considered inflation protection. It is often referred to as digital gold.
Investing in Bitcoin, however, is not for investors with the faint of heart. The price swings of the cyber motto have dominated the headlines for months. Phases of an apparently unstoppable soaring are often quickly followed by powerful crashes. Double-digit percentage rate fluctuations are not uncommon. Because behind the cryptocurrency there is neither the state nor the central bank, which would intervene if necessary. With Bitcoin, only supply and demand regulate the price. The blackest year in Bitcoin history so far was 2018. At that time, Bitcoin climbed to around 16,000 US dollars, only to crash to 3600 US dollars in the following months.
In September 2020, the Bitcoin price was quoted again at $ 10,000, since then it has risen by 500 percent – again accompanied by sometimes strong fluctuations. Then on February 16, the cryptocurrency broke the $ 50,000 mark. The electric car manufacturer Tesla announced that it would invest 1.5 billion dollars in the currency, among other things. In addition, the credit card provider Mastercard wants to open its payment network for cryptocurrencies. Large asset managers like BNY Mellon and Morgan Stanley are setting up their own departments for investments in Bitcoin & Co at the same time, or are at least thinking about it.
According to the industry service CoinMarketCap.com, the volume of cryptocurrencies listed worldwide currently amounts to just under 1.5 trillion dollars. Bitcoin accounts for around two thirds of this. Bitcoin & Co.'s susceptibility to fluctuations is one of the reasons why cyber foreign exchange has not yet established itself as an alternative means of payment. So-called "stablecoins" want to counter this. The price is not based on supply and demand, but on an underlying asset. There are now stablecoins whose value is linked to gold or currencies such as euros or dollars.
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