During Christmas, Bitcoin resumed its milestone pursuit. The cryptocurrency often split the $28,000 mark and now sets its eyes on the next record.

Only a few days after soaring over $20,000, Bitcoin is heading for the next threshold already. On Sunday, the oldest and most valuable cyber currency on the Bitstamp trading platform was often record high at approximately $28,378. For the next psychological barrier of USD 30 thousand, Bitcoin is now taking course.

The currency could not keep the level Sunday on Monday at first. However, the stock stood recently at just under $27,000 and still slightly above Saturday’s closing price. In other exchange centers, several of which have record volumes, the central bitcoin trade is not there.

Fear of loss

Private investors who stockpiled digital talers on Christmas holidays are currently pushing this event, when conventional markets shut down their exchange doors.

The price of the most famous cryptocurrency has climbed by about $4,000 over the long Christmas weekend alone. The analyst said that the atmosphere was partly motivated by the „fear of missing out“

A huge number of buyers are just scared to lose out, he added. The currency has increased by more than 7,000 dollars since the end of November – a rise of around 37%.

Prices can be dropped

The growth is tremendous even seen throughout the year. In the first spring Corona surge, prices began at about $8,000 and initially dropped to less than $4,000. Then started a slow rise that in the fall started to speed up sharply.

Experts, though, repeatedly caution about the dangers of Bitcoin that may differ. For eg, at the end of November, in 24 hours, it lost more than $3,000. Speculators and less seasoned buyers, who can toss the towel sooner or later, will be gradually drawn by fast price rises. Behind the cyber currencies there are no governments or central banks. The price is regulated by supply and demand alone.

With a stake of about 70 percent, bitcoin is by far the biggest digital currency. The market capitalization is actually about $500 billion according to an estimate by the supplier of Coinmarketcap.com. There are therefore just over 700 billion dollars in digital currencies combined.

Investors demand alternative options

The rise of bitcoin this year is due to numerous reasons. The key aspect is that investors once again concentrated on the issue of digital currencies. This is not least thanks to the Paypal’s main payment program driving consumers into digital currency like Bitcoin.

More and more professional investors are involved in cryptocurrencies. The currency is often encouraged by Guggenheim Partners, for instance, recently hopped on a bandwagon – a US investment strategist that is spending approximately $300 billion globally for clients. There are also discussions on regulated electronic currencies.

The Corona pandemic and the rapid spike in subsequent government debt further raised competition in digital currencies. Therefore, certain investors fear medium to long-term increasing inflation, against which alternatives would be taken to compensate.

By supplying computational resources in the blockchain, cryptographic coins may be „mined“ The code provides a form of inflation security. A set limit of 21 million units is open. The sum of Bitcoin listed is automatically halved at frequent intervals – most recently in May.