After a record high, the oldest cryptocurrency fell back significantly on Monday.
The digital currency Bitcoin initially did not continue its price rally on Monday. After strong price gains, a record high of around 34,800 US dollars (28,360 euros) was reached on the weekend. However, on Monday the oldest cryptocurrency fell significantly behind. On the Bitstamp trading platform, it cost around $ 32,300 in the morning.
In the past year, Bitcoin has grown massively in value. Over the year, the price has roughly quadrupled. The main reason is the generally greater interest shown by companies and investors in digital currencies such as Bitcoin. Added to this is the stronger focus on the part of central banks, which are increasingly aiming for their own digital currencies.
Investment alternative
Bitcoin supporters therefore argue that the well-known cryptocurrency could increasingly establish itself as a serious investment alternative. Critics doubt this and point to numerous weaknesses. These include the sharp fluctuations in the exchange rate of digital currencies, the high energy consumption during Bitcoin production (mining) and the risk of criminal abuse.
Bitcoin's soaring is also encouraging investors to get started with other cryptocurrencies. The second most important cyber currency, Ethereum, climbed almost 20 percent on Monday to a three-year high of $ 1,164.52. Ripple gained 16 percent to $ 0.2621.
Ethereum Profit Taking
“Now the hour of 'Altcoins' seems to strike,” said analyst Timo Emden from Emden Research. This is the term used by experts to summarize the cryptocurrencies that came onto the market after Bitcoin. Ethereum is also benefiting from the plans of the US futures exchange CME to offer futures contracts on this cyber currency from February, Emden added. This should increase the interest of institutional investors. Bitcoin futures can already be traded on the CME.
Against the background of the roughly 40 percent price surge in the first few days of 2021 alone, Ethereum threatened to take profits, warned Naeem Aslam, chief market analyst at the brokerage house AvaTrade. “Overall, however, the mood on the cryptocurrency market is still positive.” Experts believe that Bitcoin will have prices of 100,000 to 300,000 dollars at the end of 2021.
