Bitcoin continues to soar
After the price slump at the beginning of the week, bitcoin reached a new record and rose above 35,000 dollars for the first time. Experts continue to assume that this is related to speculators who want to achieve quick returns. Nevertheless, further price rises cannot be ruled out. Cryptocurrencies can also be traded at brokers such as https://sg-exness.com/deposit-and-withdrawal/.
New rise after price slump
Just last month, the bitcoin price fell by over 14 per cent within just a few hours and collapsed to 28,000 dollars. At the weekend, the 30,000 dollar mark was cracked for the first time. The market capitalisation most recently rose to around 600 billion dollars. The slump in profits at the beginning of the week was attributed to profit-taking. Now, however, the price rises could continue, because private investors are also getting on board the trend.
The current situation shows that investors are using even small price declines for a new entry. This could also indicate speculators looking for quick profits. However, interest in Bitcoin has been rising again for a few weeks, also in the media and among the general public. For some time now, Bitcoin has thus been able to reach record levels again. Over the year, the price rose more than fourfold. The interest and buying behaviour on the Hong Kong Bitcoin Exchange has certainly contributed significantly to this.
Last year, Bitcoin was one of the investments with the biggest increases internationally. In December alone, it went up by almost 55 percent and most recently the price was up 23 percent. There are probably several reasons for this, including the fact that PayPal now allows payments via Bitcoin. In addition, the interest of professional investors such as asset managers and fund providers is growing and they are increasingly entering the market.
Different omens than in 2021
This was not the case during the last crypto boom. The crypto market is still relatively small compared to other financial markets. Nevertheless, more and more pension funds, but also investment advisors, hedge funds and even managers of private assets are active in the market. This may also be an indication of long-term investor interest. If this is confirmed, Bitcoin's flight to the top could be more sustainable this time.
In addition, the Corona pandemic has also made cryptocurrencies more attractive again and many are now considering buying Dogecoin or acquiring other cryptocurrencies. Fearing inflation and rising government debt, investors are trying to hedge with alternative investments. Especially among younger investors, Bitcoin could outstrip gold as a crisis investment. When planning an investment in cryptocurrencies, it is essential to keep a close eye on the prices of the respective cryptos, such as the Dogecoin price, in order to find the right time.
However, cryptocurrencies are still considered controversial. Nevertheless, many see Bitcoin and the blockchain as an innovative technology. In addition, acceptance as an investment and speculation object is increasing. Investors can also hedge against price fluctuations of other investments with Bitcoins. Critics, however, currently fear another bubble and point to the current large price fluctuations.
