The online cryptocurrency Bitcoin’s value has surged past $34,000.00 for the first time. Although it is now drifting at around $33,000.00 the Bitcoin remains at the top of the cryptocurrency markets.
The current rapid rise in Bitcoin’s value has been attributed to the worldwide lockdowns imposed due to the COVID-19 pandemic which forced people to seek alternative sources of income. Due to this the value of Bitcoin increased by 300% in 2020 while the second most valuable cryptocurrency Ethereum’s value increased by 465%in 2020, making the year one of the most profitable years for cryptocurrency traders and investors.
It is estimated that the value of these Cryptocurrencies will continue to increase as the value of the US Dollar further drops due to the large stimulus programs rolled out by the US Federal Reserve.
Though Cryptocurrencies are being slowly accepted by mainstream vendors and corporations, the trade remains volatile as in the case of the sudden drop in 2017 where the value of Bitcoin dropped from $20,000.00 to $3,300.