Bitcoin continues to soar and exceeds US$35,000

Bitcoin continues to soar and exceeds US$35,000

(London) The price of Bitcoin surpassed $35,000 on Wednesday for the first time in its history, as the meteoric rise in the price of the first cryptomony continued into 2021 even though analysts are wary of a possible correction.

Published on January 6, 2021 at 7:57 a.m.

The price of bitcoin reached $35,841, up 6.3% over the session and breaking its record for the fifteenth time in less than two months.

At around 7:15 a.m., Bitcoin was trading at $34,940, according to prices compiled by the Bloomberg agency.

As is often the case in this highly volatile market, analysts and specialized brokers interviewed did not find any events to explain this new surge in prices.

But for several market players, Bitcoin, which is decentralised and not dependent on central banks, represents a form of digital gold.

Cryptocurrencies would therefore represent a means of protecting themselves from the inflation that could be created by the ultra-accommodating monetary measures adopted by many central banks, led by the US Federal Reserve (Fed).

JPMorgan analysts estimate that Bitcoin could reach $146,000, provided that its volatility eases to attract investors who for the moment prefer gold, which is more stable.

Analysts at Société Générale are wondering whether Bitcoin will be able to compete with gold, which has won the confidence of investors throughout its 3,000-year history. Another medium-term hypothesis for the cryptomoney industry, according to them: « if the recent rise is reversed in the coming months, we will probably talk about the Bitcoin pandemic bubble ».

In the wake of Bitcoin, ethereum rose by nearly 6% to $1,150.

« Ethereum is the only other cryptocurrency worth mentioning, » said Naeem Aslam, an analyst at Ava Trade.

Conversely, ripple, another notable cryptomony, is suffering from the conflict between its creators and the US market regulator, the SEC.

The ripple was trading at $0.22, a 66% drop from the levels reached at the end of November, when the price of crypto-currency began to soar.

Bitcoin continues to soar and exceeds US$35,000
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