Bitcoin has gained several percentage points in value in the past few weeks. It is now almost $40,000. But what are the reasons for the new annual record?
Bitcoin is the largest virtual currency in the world with a market capitalization of more than $406 billion. But the value of the cryptocurrency is subject to strong fluctuations.
However, these appear to have stabilized somewhat in the past few weeks. Bitcoin has now almost reached a value of $40,000. But what are the reasons behind this increase?
Bitcoin breaks a new annual record
Around a year ago, the value of Bitcoin was less than 16,000 euros. In the past four weeks, however, the virtual currency has increased in value by almost 15 percent.
Last weekend brought a final price jump. Bitcoin has now set a new annual record and is worth more than it has been in a year and a half.
That's behind the record high
The reasons for the recovery of the Bitcoin price are varied. On the one hand, the launch of the first Bitcoin spot ETF is expected in the USA. This could further increase demand for the cryptocurrency, which of course could then have an impact on its value.
The expected interest rate policy of the ECB and Fed also makes analysts positive about Bitcoin. Since inflation is declining more sharply than previously expected, this could also affect the decisions of the central banks.
Where else could Bitcoin go?
Bitcoin had already experienced enormous hype in 2021, which was also reflected in the value of the token. At that time, the cryptocurrency had reached highs of more than 65,000 US dollars.
But the virtual currency could soon crack these values too. At least that's what the major British bank Standard Chartered expects.
Accordingly, Bitcoin could break the $100,000 mark as early as the end of 2024. By the end of this year it should already be $50,000.