Bitcoin hits $ 60,000 for the first time
Posted On March 13, 2021
The digital currency Bitcoin cost more than $ 60,000 for the first time on Saturday. On the Bitstamp trading platform, the world’s most famous digital currency cost a little more than $ 60,400 at its peak. Most recently, the price was down again at $ 59,900, but still well above the level on Friday evening. With the profits from Saturday, Bitcoin continued the winning streak of the past few days.
The digital currency thus ended a weaker phase from the end of February and the beginning of March. Apart from minor setbacks, the digital currency has been on a high flight since the fall of last year. Bitcoin cost just $ 10,000 at the end of September. Since then it has been going up. Digital currencies such as Bitcoin are considered risky investments because they fluctuate considerably in price. They have not yet fully established themselves as an independent asset class on the financial markets, although interest among investors has recently increased.
According to Coinmarketcap, Bitcoin now has a market capitalization of $ 1.1 trillion. This means that the oldest cryptocurrency is also by far the largest. All cyber currencies have a total value of around $ 1.8 trillion. Behind Bitcoin, the digital currency Ether ranks second with a market capitalization of currently 217 billion dollars.
According to experts such as market analyst Timo Emden, the latest price increase is due, among other things, to the 1.9 trillion economic stimulus program in the United States. This fueled the inflation worries and the associated search for alternative investment options. In addition to fiscal policy, the central banks also provided support with their measures to counter the economic consequences of the corona pandemic.
In addition, speculation about the approval of exchange-traded funds in the United States sparked the imagination. “For the industry, approval by the responsible supervisory authorities would be a signal with consequences. In the meantime, stock exchange operators are no longer wondering whether a specific fund will be approved, but only when,” Emden wrote in a study on Saturday. This could significantly increase acceptance among private investors.
In addition to pure speculative interest, Bitcoin has provided tailwind with its steep rise in recent months, as well as increasing acceptance by well-known companies. The payment service provider PayPal had initially announced that it would enable its US customers to trade and pay in Bitcoin.
In February, the US electric car manufacturer Tesla opened up to digital currencies and thus allowed the Bitcoin rate to skyrocket. The company plans to accept payments in Bitcoin for purchases of cars and other products in the near future. Tesla also invested part of its capital in the digital currency. In addition, the illustrious and controversial Tesla boss Elon Musk repeatedly advertised Bitcoin via Twitter.
With the recent rally, the cyber motto has now more than made up for the recent weakness. Profit-taking by speculators and greater unrest in the bond market due to significantly increased yields had the price plummet within a week by more than $ 15,000 to a good $ 43,000. This minus of more than a quarter within a few days underlines the susceptibility to fluctuations and the risks of Bitcoin.
Skeptics, for example, repeatedly warn of the strong fluctuations that can cause problems, especially for small investors. Bitcoin is also a thorn in the side of many central bankers. Some observers are already talking about the struggle between the monetary systems.
It was only at the beginning of the year that the former head of the US Federal Reserve – the new US Treasury Secretary Janet Yellen – and the President of the European Central Bank (ECB), Christine Lagarde, spoke critically about Bitcoin. But governments are also critical of digital currencies, as they are also said to be used for criminal purposes.