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Saturday, February 27, 2021

Bitcoin Is Reaching Towards $40,000 Following a Short Plunge

Bitcoin has been under a tumultuous phase, with the prices going back and forth- previously it reached $42,000, then fell down to $30,000. The plunge of 20% was soon filled in as the trading price of Bitcoin reached $40,000 yet again. This shift is simply an illustration of how the volatility in this cryptocurrency works. It also implies that investors have to hold on to whatever they have- because the ride is going to be quite bumpy. 

Currently, Bitcoin and other cryptocurrencies are enjoying the weakness shown by the US Dollar. They are also expecting the Federal Reserve to ensure that the interest rates are nearing zero for a few years further down the line. Goes without saying, this confidence is surely strengthened by the trust placed in cryptocurrency by BlackRock or other such financial institutions. According to 21st-century financial institutions, this currency is simply yet another form of gold.

How Are Bitcoin’s Current Prices Different From The Surge In 2017?

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Several bullish traders have also highlighted the fact that both Square and Paypal have been letting customers both purchase and sell bitcoin. Several investors like Paul Tudor Jones, Mike Novogratz, and Stanley Druckenmiller have all been backing bitcoin, ethereum, and other forms of cryptocurrency. 

And this is what separates the rise of Bitcoin in 2020-21, from the rise that took place in 2017. Back then, the traders were hardly interested in the growth of this cryptocurrency- precisely why the price rose to around $20,000, before falling down to $3,500. This time around, several heavy-weight investors have been interested. 

According to Jai Bifulco, the CCO of Kinesis, the surge in 2017 was backed by retailers who wanted to earn more in short periods of time. Right now, the recent growth has been aimed towards institutional development on a large scale. Yet, he never forgot to mention that cryptocurrency and its asses have always been extremely volatile.

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