In the coming 2021, the most popular cryptocurrency Bitcoin continues to set records. Having exceeded the $ 31,000 mark on Saturday, January 2, the bitcoin rate on Sunday has already crossed the $ 34,000 mark. Currently, the cost of bitcoin on one of the largest cryptocurrency exchanges, Binance, is $ 34,444.
Bitcoin’s record advance is due to the recent perception that it is a form of “digital gold”, along with an influx of institutional investors into the cryptocurrency market, including the hedge fund Skybridge Capital of former adviser to the US President Anthony Scaramucci, who invested in December in cryptocurrency $ 182 million, MassMutual ($ 100 million in December) and the Guggenheim Investments fund, which spent $ 5 billion on the purchase of bitcoins, which is about 10% of its funds.
“The price of bitcoins is determined by institutional money and there is not enough of itLaurent Kssis, managing director of Swiss finance and technology firm 21Shares, told CoinDesk.
Another reason for the rise in the cryptocurrency rate is that the US Federal Reserve, along with other central banks, turned on the printing press in an attempt to prevent the economic fallout from the coronavirus pandemic. Many see this as a potential catalyst for inflation, which could have a positive effect on the price of bitcoin.
“Many corporations store dollars in BTC because they are losing money in the mainstream banking sector, so it makes sense“, – said Laurent Kssis.
The growing global macroeconomic uncertainty could also play a role in the surge in the cryptocurrency rate. In addition, it could have been affected by the withdrawal of money from the XRP token and the so-called privacy coins, which faced legal and regulatory issues.
With a market value of more than $ 595 billion, bitcoin is now second only to nine publicly traded companies, between Alibaba ($ 648.3 billion) and Berkshire Hathaway ($ 543.7 billion).
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