Markets

Bitcoin rises above $ 40,000 for the first time

D.he price of the crypto asset Bitcoin continues at a breathtaking pace: On Wednesday evening, the price rose over $ 40,000. On Friday morning the price was down again at $ 38,906. It wasn’t until mid-December 2020 that the cryptocurrency passed the $ 20,000 mark and shortly thereafter the $ 30,000 threshold. This rally is fueled by investors’ fear of missing out on further price gains, said Emden Research analyst Timo Emden.

“The bull market currently being observed doesn’t have much in common with a healthy rise.” Other stock market operators also warn of a setback because the market has overheated. In the long term, however, experts trust Bitcoin to be a multiple of the current rates. Cryptocurrencies established themselves as serious investment objects for investors who were looking for alternatives to hedge their portfolios against possible inflation. Especially among the younger ones, Bitcoin & Co. outperformed classics such as gold.

The market recently pointed out that the asset had recently moved more into the focus of large financial investors. Above all, the announcement by the payment service PayPal that it would allow its customers to pay with Bitcoin triggered high demand. However, experts warn of the extreme price fluctuations that can be observed again and again. Three years ago, for example, the Bitcoin rate collapsed by around 70 percent in a short time. Because of the exchange rate fluctuations and the consequent difficult use as a medium of exchange, central banks reject the designation digital currency. Alternatively, they speak of a crypto asset.

Tags

Related Articles

Back to top button
Close
Close