Bitcoin is breaking records. The mother of cryptomoney has just crossed the $ 40,000 mark. In the space of a few weeks, the value of BTC more than tripled. After the March 2020 crash, Bitcoin is now benefiting from several favorable factors, including its integration into the online payment service PayPal and the entry into the scene of institutional investors.
This Thursday, January 7, 2020, the price of Bitcoin exceeded for the first time the threshold of 40,000 dollars. Taking advantage of the optimism of the markets after the certification of the election of Joe Biden, the mother of cryptocurrencies allowed itself a meteoric breakthrough to 40,380 dollars before stabilizing around 39,000 dollars.
After the abysmal crash of last March, during which the price of Bitcoin briefly fell to $ 4,000, the digital currency is setting records. In December, Bitcoin hit $ 20,000 for the first time since its inception in 2009. A few weeks later, the price rose above $ 30,000, sparking investor euphoria.
Why is the price of Bitcoin exploding?
The explosion in the price of Bitcoin is due to a handful of factors. Let’s start with PayPal’s historic announcement last October. The online payment service now allows American Internet users to buy, manage and sell cryptocurrencies, including the essential Bitcoin. The integration of BTC with PayPal has given a huge boost to the adoption of virtual currencies.
Considered a safe haven and a weapon against fiat currency inflation, Bitcoin is now attracting the attention of institutional investors. According to analysts, the surge in price is driven by massive investments made by investment banks, huge private portfolios and American financial companies like Blackrock. During the health crisis, many investors, scalded by the collapse of the stock market, became interested in alternatives.
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Like precious metals, Bitcoin is now considered an anti-crisis asset by these institutional investors. Under these conditions, JPMorgan analysts believe that Bitcoin’s price could reach $ 146,000 over the (very) long term.