The price of Bitcoin continues to break records

The price of Bitcoin continues to break records

The price of the oldest cryptocurrency in the world continues to break records. The latest has surpassed $ 34,000. According to Bloomberg, the price of Bitcoin on Sunday in Singapore reached USD 34,182.75 (EUR 27,856.53). It later fell slightly to $ 33,970, but it still represents a continuation of rapid growth. It reached $ 30,000 on Saturday alone, beating $ 33,000 on the same day. The most famous digital currency thus gained a dizzying pace after a sharp fall due to a pandemic, when it lost about half of the value recorded at the beginning of the year. It reached about $ 8,000 in early 2020, later dropping below $ 4,000 after the onset of the pandemic. Subsequently, however, it began to recover and the growth rate accelerated sharply at the end of the year. According to Antoni Trenchev of Nexo in London, "bitcoin is likely to reach $ 50,000 in the first quarter of this year." The reason for the sharp rise in the price of bitcoin since the beginning of the year is not entirely clear. There were several factors behind its strengthening last year. Increasing its acceptance among investors is considered to be the most important. The PayPal payment service, which wants to enable its users to make payments in digital currencies, has greatly contributed to this. Another factor was the increase in demand from institutional investors who buy bitcoin as a hedge against inflation, similar to gold. This is due to unprecedented fiscal and monetary incentives to support economies during the new coronavirus pandemic. However, experts also warn against the risk of extreme fluctuations in the bitcoin exchange rate. Three years ago, its price fell by about 70 percent in a short time.