Just weeks after it shattered its years of striving to reach $ 20,000 in value, Bitcoin is back on track. The cryptocurrency passed on Saturday $ 33,000 in value, according to CoinDesk, before dropping a bit during the day.
Bitcoin’s new gains represent a record high for the currency, an astonishing turnaround considering where it was nearly a year ago. In March, Bitcoin 50% lost from its value in two days to below $ 4,000, reflecting the volatility on Wall Street during the early days of the pandemic. Nonetheless, the world’s leading cryptocurrency closed the year with an increase of more than 300% per CoinDesk. At the time of publishing this blog, it was up 10.62% in the last 24 hours and had a market cap of $ 605 billion.
However, as we have said before, this is not intended to be an encouragement to buy Bitcoin. (Since we are currently in a global health crisis, you should not use your hard-earned savings to buy Bitcoin). The cryptocurrency is famously moody and has generated just as much excitement in recent years as it has despair.
Case in point: In 2017, the last time Bitcoin came close to $ 20,000 in value, it lost more than 80% of its worth the following year.
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Bitcoin has undoubtedly benefited from increased surveillance, such as the creation of the FICO cryptocurrency risk analysis solution for banks, as well as increased institutional investment and support. In November, the Guggenheim Macro Opportunities Fund announced it would invest up to 10% of its investments net assets value in Bitcoin. PayPal also gave Bitcoin and other currencies a thumbs up last year when it announced that it would accept cryptocurrency for online payments and allows users to do so buy, sell and hold cryptocurrencies.
Other investors, such as Rick Rieder, Chief Investment Officer Global Fixed Income at BlackRock, the world’s largest asset manager, said Bitcoin was ‘here to stay’ and that it had the potential to replace gold. That said, from November Rieder had not added Bitcoin to any of his investment portfolios.
Bitcoin’s new record has caused a stir, with some financial experts saying it’s on the way increase even more. Others disagree and say it is way too expensive, possibly over 50%, and its fair fair value is about $ 12,000.