Over $ 28,000: Bitcoin rally continues

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The cryptocurrency Bitcoin is still on the rise. On Sunday, the price climbed above $ 28,000 for the first time on the Bitstamp platform.

After a brief high of $ 28,378, the digital currency slipped back to around $ 27,000, but remained – at least on Bitstamp – above the closing price on Saturday. Since there is no central Bitcoin trading, other crypto marketplaces can show different rates.

Unparalleled rise in 2020

Over Christmas alone, Bitcoin rose by around $ 4,000. Over the month as a whole, Bitcoin gained around $ 7,000 in value by around 35 percent.

Bitcoin has had a very eventful year. At the beginning of the year, the price was around $ 8,000. The first wave of the corona pandemic then more than halved the rate to below $ 4,000. After a slow rise again, growth began in the autumn, by comparison, almost explosively.

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Reasons for the meteoric rise

Experts see the reasons for this rapid rise as multifactorial. Among other things, PayPal’s announcement that it wants to enable its customers to pay with crypto currencies is attributed to a share in the success.

Even more important could be the growing interest of professional investors in cryptocurrencies, of which Bitcoin, with a total capitalization of around $ 500 billion, holds the lion’s share of the total volume of $ 700 billion. The advantage of this: professional investors tend to work for the long term. That could take the strong fluctuations out of the price development.

The corona pandemic itself is also considered a price driver. The sharp rise in national debt rates around the world give rise to fears of rising inflation rates. In order to avoid a possible devaluation of assets, investors seem to want to hedge at least partially with currencies that are independent of the capital market.

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