Bitcoin is shocking when it goes crazy again, possibly going back to its peak three years ago

Proponents of bitcoin argue that this time again the currency is feverish, but will be very different from the situation three years ago – that is, collapsing after a crazy rise.

Specifically, the price of bitcoin rose more than 25% this month and hit the $ 13,858 mark on Wednesday, the highest level since January 2018. Compared to the time when the crypto bubble burst, this is a very long journey: From its historic high in December 2017 to nearly $ 20,000, bitcoin has fallen to as low as $ 3,136 in 1 year. .

One digital asset expert said that bitcoin’s rally was not just driven by speculative frantic intentions by individual investors. They point out that institutions are also showing an interest in bitcoin. For example, PayPal Holdings’ decision to allow customers to access digital currencies and the use of JPMorgan Chase & Co Coin for the first time.

“This rebound seems to have been driven by more institutions than by the private investor wave,” said Nic Carter, founder of research firm Coin Metrics.

The biggest currency hit $ 13,000 last week for the first time in a year after a statement from PayPal said customers would be allowed to buy and spend digital currencies on their platform. The wave of optimism was heightened when many people said that this move would show a wave of more digital currency adoption.

“PayPal’s statement will teach millions of people about the value of bitcoin and digital assets with their lives, assets and freedoms. We are excited about such information and expectations. could see more major payment apps enter the game, “said Guy Hirsch, director of payments platform eToro.

PayPal’s information comes amid a series of signals that traditional financial institutions are very open to digital currencies.

Fidelity Investment launched a Bitcoin fund in the summer, becoming one of the most well-known companies to publicize their interest in cryptocurrencies. Public companies like Square and MicroStrategy have also invested in bitcoin. The European Central Bank will also begin to experience the digital currency as China continues to experiment with the digital yuan.

While a few countries have begun to show interest in creating digital currencies, there is little evidence that it will replace physical currency anytime soon. Mike Novogratz – founder and CEO of Galaxy Investment Partners has said that the signs of the “digital golden era” and that this currency can be used every day is still very vague.

In his interview with Bloomberg TV Interview, the Bitcoin investor said that he sees no signs that the digital currency will be used in everyday transactions for a few more years but it will be used as a storage place. value.

For Marc Chandler – Chief Strategy Officer at Bannockburn Global – PayPal’s openness to crypto will be a test of crypto.

“Now that you can officially use the digital currency, you can use it or not. Let’s wait and see if people use it,” says Chandler.