The crypto-market was filled with forecasts about the rapid growth of the primary digital asset before 2020 ended. In early 2021, the supporters of this theory became successful: Bitcoin managed to break through $ 34,000 mark for the first time.
The new record was recorded late Saturday night, January 2. The main cryptocurrency surpassed the level of $ 33,000 and further rose to $ 33,994. However, it failed to consolidate on the positions won, despite the brilliant victory. As a result, it started to decline the next day. This trend continued at the beginning of a new week. Today (January 4), Bitcoin is trading near the $ 33,330 mark, almost without leaving the current range.
Experts said that Bitcoin's price has risen more than fourfold over the past year. Its most active growth was recorded in December 2020 and so, the upward trend continued this year. The price growth of the main digital currency began in March last year amid COVID-19 pandemic and the global collapse of stock and commodity markets. Investors have been actively investing in cryptocurrencies and other risky assets, inspired by the creation of COVID-19 vaccines and the introduction of stimulus measures by the world's central banks. These factors have provided strong support to the main digital asset.
Based on the observations of analysts, Bitcoin's trading volumes also increased along with its growth. According to CoinMarketCap, its trading volumes soared by almost 104% for the past 24 hours. Experts are sure that such an encouraging start to the new year will positively affect the further dynamics of the leading cryptocurrency. They believe that one of the reasons for the sharp growth of Bitcoin was the actions of retail investors, although institutional investors are still at the control of the crypto market.
According to experts, the catalyst for Bitcoin's sudden rise is the desire not to miss out on profit, as well as to make the most of the current situation. In this case, it will become more expensive in the course of increasing investments in BTC by large companies. Analysts say that Bitcoin received strong support on the wave of universal popularity. Therefore, this will attract new retail investors and large players to the crypto market in the near future, which will lead to another price growth.
The material has been provided by InstaForex Company - www.instaforex.com