Bitcoin Price: Why The Value Of Cryptocurrency Has Reached An All Time High

Bitcoin’s price has hit an all-time high, climbing above $ 62,000 (£ 45,000) for the first time.

The cryptocurrency experienced a huge surge in 2021, helped by the support of Tesla and PayPal.

Tesla announced in February that it had invested $ 1.5 billion in Bitcoin, while PayPal is now allowing users to use the cryptocurrency to buy and sell on its platform.

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Mastercard also plans to support Bitcoin payments later this year.

Bitcoin opened the year at around £ 21,000 after spending under £ 10,000 for most of 2020. It hit 40,000 pounds in February and crashed briefly before rising again.

Ethereum, the world’s second largest cryptocurrency, has also hit a record high of $ 2,200 (£ 1,600) due to the success of Bitcoin.

What could happen to Bitcoin next?

Simon Peters, an analyst at the investment platform eToro, said: “The momentum has changed dramatically this year. Institutional demand is flooding the market, as is the growing trend of taking large amounts of Bitcoin and Ethereum offline and transferring them to their own wallets.

“There is only one outcome out of that, and investors should expect higher ups and downs all year round.

“In the short term, we may soon see profit-taking from some investors – a common theme that arises when Bitcoin or its peers hit record highs – but the long-term trend remains solid and the demand for alternative investments continues.”

Coinbase, one of the largest trading platforms for cryptocurrencies, is currently preparing to go public. This could add further value to Bitcoin, experts have suggested.

Nick Spanos, co-founder of the smart contract platform, said, “Coinbase’s upcoming public debut is particularly exciting for both mainstream market investors and crypto market enthusiasts.

“While the former will have a more direct opportunity to buy the shares of a company that is central to Bitcoin and the crypto space, the latter are thrilled as Coinbase will open the gates for more conservative investors to accept the coin, and perhaps other digital ones Assets. “

However, it is worth remembering that cryptocurrencies are notoriously volatile and can be a risky investment.

An ad for the Coinfloor cryptocurrency exchange was banned by the Advertising Standards Authority last month for suggesting buying Bitcoin to invest safely.

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