The public has been quiet about the crypto currency Bitcoin in recent months, which was also due to the fact that the times of spectacular price rises and crashes seemed to be over. But recently the course has been climbing again and a new record seems within reach.
The Bitcoin price has always been “more agitated” or more volatile than is the case with conventional currencies, but after the explosive rise in 2017 and the subsequent drop in the price, the cryptocurrency appeared to be around $8,000 in the last one to two years (in a very rough cut) to have leveled off. However, there were still swings upwards and downwards.
Last summer, the Bitcoin price then settled above the $ 10,000 mark, but it has been rising steeply for a good month. According to CoinDesk, the $17,000 mark has been cracked and a new record is within reach. This was set up in December 2017, at that time a Bitcoin was worth almost 19,800 dollars (around 16,700 euros). This means that the digital currency can report a year-on-year increase of 146 percent.
Many reasons for price rise
As always, the reasons for the price increase are diverse: Bitcoin is benefiting from the corona crisis and the associated aid packages from the respective governments, plus some investments by prominent companies. According to financial experts, PayPal’s announcement that users can buy, hold, and sell virtual currencies via the platform also plays an important role. Other financial companies also make it easier for their customers to invest and trade in Bitcoin and Co., which of course benefits the price. According to CoinDesk, experts also refer to developments in traditional markets, where negative interest rates encourage many people to invest in cryptocurrencies.
Finally, the so-called “Easy Money Policy” also plays a major role, in which the markets are supplied with fresh money by central banks through low interest rates.
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