Bitcoin soared to a new record high above $33,000 on Saturday and has tripled in value in the past year.
Investors have been attracted to the cryptocurrency as the US dollar has weakened and with the Federal Reserve expected to leave interest rates near zero for several years, well known names are adding to bitcoinâ€™s appeal.
Investors have been attracted to the narrative that the cryptocurrency could act as a store of wealth amid rampant central-bank money printing in the past year to bolster an economic recovery from the coronavirus pandemic.
PayPal PYPL recently allowed users on its platformÂ to purchaseÂ bitcoin
Â as well as other sister cryptos likeÂ ethereumÂ ETHUSD Â Bitcoin CashÂ and LitecoinÂ LTCUSD.Â Squareâ€™sÂ SQ popular Cash App also allows users to buy and sell bitcoins.
This isnâ€™t bitcoinâ€™s first price spike. It had a rally in 2017 but its price slumped to justÂ over $3,000Â by early 2019 asÂ China cracked down on cryptocurrency businesses. It then soared past $20,000Â in December, climbing rapidly in the past month.
Still, Bitcoin remains a thinly traded market and the rally in 2017 was followed by an 83% collapse that lasted a year.
Coinbase saw a large spike in buyer activity Saturday with analysts saying the trend was reminiscent of MicroStrategyâ€™s
Bitcoin accumulation, possibly fueled by institutional buy orders, according to CoinTelegraph.
In the last 48 hours, Coinbase has continuously seen a high premium compared to other platforms. When the price of bitcoin surpassed $30,000, the premium reached as high as $350.
The post Bitcoin soars to a new record above $33,000 Saturday appeared first on TechFans.