Bitcoin price crossed the $ 34,000 mark

According to Bloomberg, today (January 3), Bitcoin traded in Singapore rose 7.8% to $ 34,182.75 before turning down slightly to $ 33,970. Thus Bitcoin price increased by a half in December.

In 2020, the world’s most controversial asset continues to fluctuate. In March, when the Covid-19 pandemic reached its peak, prices fell by up to 25% but by the end of the year it skyrocketed again.

According to Antoni Trenchev, co-founder of Nexo, the company claiming to be the largest digital lender in the world, Bitcoin price could reach 50,000 USD in the first quarter of 2021. Next week, institutional investors will come back from the holiday and could energize the rally. In the last holiday, prices have been supported by purchasing power from retail investors.

Meanwhile, according to Bloomberg Intelligence expert Mike McGlone, the group that owns Bitcoin has now expanded to professional financial investors rather than just tech believers and speculators. Supporters of Bitcoin remain steadfast with the argument that the currency is a safe haven in the context of massive central banks printing money, even when inflation remains low.

Even Scott Minerd, chief investment officer at Guggenheim Investments, said the price would eventually reach $ 400,000.

However, there are still many reasons for investors to be cautious, the biggest reason is that Bitcoin is still a market with too low liquidity. On November 26, the currency fell 14% due to warnings that the crypto market is about to enter a correction. In 2017, after soaring, the price also dropped by 83%.

Consult Bloomberg