Bitcoin digital currency
Over the past twelve months, the price has risen by over 350 percent.
Frankfurt Bitcoin, the oldest and most popular cryptocurrency, is rising to new record heights. According to the industry platform Coinmarketcap, the cyber currency was quoted at $ 48,745 on Friday. Bitcoin hovered around the $ 47,000 mark on Saturday morning. This means that the digital currency is no longer further away from the $ 50,000 mark, which is considered an important limit.
Bitcoin was still trading at below $ 38,100 last Monday, only to gain in value over the course of the week, so that it was able to record its new record high on Friday. This corresponds to an increase of around 27 percent.
Timo Emden, market analyst and founder of the analysis company Emden Research, sees the reason for the renewed price increase last week, the latest advances by various companies either to invest in Bitcoin themselves, to consider Bitcoin investments or to accept Bitcoin as a means of payment. “
The se are currently the absolute drivers of the Price ”, says Emden.
The announcement by the electric car maker Tesla that it would invest $ 1.5 billion in Bitcoin led to a significant rise in the price of the digital currency last week. Now the short message service Twitter is also considering buying Bitcoin based on the Tesla model. A decision has not yet been made, said Ned Segal, the company’s chief financial officer, on Wednesday.
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Twitter boss Jack Dorsey, who also heads the payment processor Square, is a fan of cryptocurrencies, as is Tesla boss Elon Musk. Square announced last October that it had bought 4709 Bitcoin for a total of $ 50 million at the time.
PayPal provides a further boost
On Thursday, the US payment service provider Mastercard then announced that it would allow future transactions in cryptocurrencies.
The US payment service PayPal, on the other hand, does not want to invest company money in crypto values, as it became known at the end of the week.
The company had already announced last year that it would open its platform for payments with cryptocurrencies. “We will probably not invest corporate money in such financial investments, but we want to take advantage of this growth opportunity that lies ahead of us,” said CFO John Rainey on CNBC on Thursday.
According to market analyst Emden, investors can be sure that Bitcoin will surely reach the $ 50,000 mark “in the near future”. However, reaching this target price could possibly be followed by a setback for the time being.
The reason: “Many investors have set a limit of $ 50,000 for their Bitcoin investment. If this mark is reached, they sell and take the profits with them, ”explains Emden. That would lower the course. But the next run by private investors could also follow, explains Emden.
Despite Mastercard’s announcement that it will accept crypto currencies as a means of payment in the future, many experts do not believe that Bitcoin will soon establish itself as a means of everyday payment. “
The volatility is absolutely off-putting. In the future, cryptocurrencies will continue to be used more as a store of value, ”Emden also estimates.
The second most important cryptocurrency, ether – measured by market capitalization – is moving towards the $ 2,000 mark. It is currently trading at $ 1,840.
More: Online broker Flatexdegiro wants to enable trading in Bitcoin.