The price of bitcoin has, for the first time ever, surpassed the $40,000 mark to hit a new all-time high of $40,181.23. The flagship cryptocurrency’s price climbed more than 700% from its closing low on March 12.
Bitcoin’s price has been rising thanks to increasing demand from institutional, corporate, and retail investors attracted to the currency because of fears associated with potential currency debasement and inflation in a world of low yields and negative interest rates.
While BTC more than doubled its previous all-time high of $20,000, Ethereum is trading below its all-time high of over $1,400, at $1,190. XRP, the fourth biggest in terms of market capitalization, has been recovering from a $0.18 low seen after the SEC’s lawsuit against Ripple was announced.
Speaking to Returns the CEO of crypto consortium Panxora group, Gavin Smith, said BTC could be due for a correction, saying that while “further growth is inevitable,” investors “should not expect this to move in a straight line.”
“The reality is that bitcoin is far from being a magic money tree, nor is it free from downward price swings. In fact, we can expect dips as sharp as 25% at times as investors periodically withdraw profits.”
Bitcoin’s surge so far this year has helped the total market capitalization of all cryptocurrencies surpass $1 trillion.
Source: https://www.cryptocompare.com/email-updates/daily/2021/jan/08/
