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Bitcoin hit a new high above $ 33,000 on Saturday and has tripled in value over the past year.
Investors have been drawn to cryptocurrency as the US dollar has weakened and the Federal Reserve is expected to keep interest rates close to zero for several years, well-known names adding to bitcoin’s appeal.
Bitcoin BTCUSD,
is ultimately expected to climb to around $ 400,000, Scott Minerd, chief investment officer of Guggenheim Investments, said in December.
Investors have been drawn to the story that cryptocurrency could serve as a store of wealth amid rampant central bank money printing over the past year to support economic recovery from the coronavirus pandemic .
PayPal PYPL recently allowed users of its platform to buy BTCUSD bitcoin,
as well as other sister cryptos like ethereum ETHUSD Bitcoin Cash and Litecoin LTCUSD. Square’s popular SQ Cash app also allows users to buy and sell bitcoin.
This isn’t the first bitcoin price spike. It saw a rally in 2017, but its price fell to just over $ 3,000 in early 2019 as China cracked down on cryptocurrency companies. It then surpassed $ 20,000 in December, increasing rapidly last month.
Still, Bitcoin remains a weakly traded market, and the 2017 rally was followed by an 83% collapse that lasted for a year.
Coinbase saw a surge in buyer activity on Saturday, with analysts saying the trend was reminiscent of MicroStrategy’s MSTR,
Bitcoin buildup, likely fueled by institutional buy orders, according to CoinTelegraph.
Over the past 48 hours, Coinbase has continuously seen a high premium compared to other platforms. When the price of bitcoin exceeded $ 30,000, the premium reached $ 350.
See also: As bitcoin hits all-time highs, Riot Blockchain’s stock grew nearly 1,500% in 2020
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