Last month, Bitcoin broke through the $50,000 barrier for the second time. Experts explain why Bitcoin’s value has skyrocketed. Bitcoin, the oldest and most popular cryptocurrency, has breached the infamous $50,000 mark for the first time. The spike in Bitcoin price has once again boosted market emotions, with brokerages and market watchers anticipating another large rally in the cryptocurrency. The digital currency has gained around $9,000 in the last week.
The surge of instability and volatility in the digital currency, on the other hand, kept crypto traders on edge and undecided. Only this year has BTC seen its largest ever increase, with the money reaching $64,000 in April. The cause for this is the entry of large corporations and institutions, such as Tesla, into the digital asset market. However, it fell below the $30,000 level once more.
BTC surpassed the $50,000 milestone in early September but then collapsed, causing other big crypto coins to lose value as well. Bitcoin has been trading above $30,000 for several months. Nevertheless, it has begun to rise since late July.
Experts take on Bitcoin’s bumpy ride & bright outlook
According to crypto specialists, there is no specific cause for the sudden increase in Bitcoin other than the desire of traders to invest in stocks. There are historical viewpoints on stock trading in October. Notably, the worst US stock market crashes occurred in this month in 1929, 187, and 2008.
Traders and investors expect Bitcoin can do similarly well as it did in the fourth quarter of 2020. BTC was selling about $11,000 in October 2020. But within two months, it had risen to nearly $30,000, breaking through in January 2021. Crypto specialists urge investors not to invest more than 5% of their overall capital.
Former hedge fund manager and crypto billionaire Mike Novogratz took to Twitter to discuss the current spike in Bitcoin’s value. He claimed that Bitcoin may have resumed its fourth-quarter climb.