The appreciation of the cryptocurrency Bitcoin will continue into the new year. The digital currency exceeded the limit of 30,000 dollars (approx. 24,720 euros) for the first time on Saturday. The cryptocurrency has long appreciated in value and almost quadrupled in the past year.
During the first corona wave, the Bitcoin price initially fell below USD 5,000. After that, the price rose. It has been particularly strong since autumn: the value of the currency has almost tripled since the beginning of October.
Crypto coins are becoming increasingly popular right now as large companies like PayPal show increasing interest. This raises hope that cryptocurrencies will become more interesting for the general public.
In addition, government and central bank support means there is so much money available that more money is being invested in riskier assets. There is also a group of people who expect Bitcoin – just like gold – to be a good investment as there are only a limited number of Bitcoins available. There are around 18.5 million bitcoins in circulation, with a maximum of 21 million in the future. This makes the cryptocurrency less sensitive to things like inflation.
The value of cryptocurrencies has been rising and falling for years. The first major Bitcoin rally in 2017 led to a record high that was only broken three years later, in mid-December last year. In the meantime, Bitcoin collapsed several times. In September 2018, the value hit the lowest point (USD 3,300) and at the lowest point of this year, Bitcoin could be bought for USD 5,200.