The digital currency bitcoin continues to advance after a brief dip. The currency first passed the $ 35,000 mark on Wednesday. This happened less than two days after bitcoin experienced its most significant daily loss since March.
The world’s best-known crypto coin was worth $ 35,085 on Wednesday morning, according to crypto exchange website Coinmarketcap. This gained more than 12 percent in value in 24 hours. On Monday, the currency lost 17 percent in value. In all of 2020, bitcoin’s value quadrupled.
Several reasons are cited to explain the recent advance of the digital currency. Some traders point to the earlier forecast of the US bank JPMorgan Chase, which foresees 146,000 dollars for the currency in the longer term. The general tendency in global financial markets, where there seems to be more willing to take risks, also contributes to advancing.
The market for bitcoin and other digital coins is also increasingly mature, which means there are more extensive and larger buyers. More institutions and well-known investors have also started to allocate funds in bitcoin or have said they are open to it.
Furthermore, more and more investors would like to be in bitcoin for the longer term. Reference is made to the rise of blockchain technology with which bitcoin is intertwined. Blockchain is a digital log, in which all actions are recorded by all participants so that they cannot be tampered with. Digital information is chopped up and stored locally.
Some market experts argue that digital currencies provide a cover against dollar weakness and inflation risks in a world awash with fiscal and monetary stimulus. Others argue that private investors and certain funds according to the trends are currently creating an “unsustainable bubble”.