Bitcoin crashed over the weekend to below $34,000, having hit a new all-time high last week above $42,000.
The latest price remains way up when put in context with recent weeks and months, with the price rising steadily over the last nine months from below $5,000 last March.
Other major cryptocurrencies, including ethereum (ether), litecoin and bitcoin cash have also experienced massive gains in recent months, with some analysts predicting that this may be still only the early stages of a major bull run.
The last major bull run in 2017 saw bitcoin’s price rise from a few thousand dollars to around $20,000, however it was followed by a painful correction.
The notoriously volatile market is prone to sudden movements, as was demonstrated earlier this week when bitcoin fell by around $6,000 in the space of just a few hours.
Follow all the latest news, analysis and market predictions here.
INDY/LIFE Newsletter
Be inspired with the latest lifestyle trends every week
Please enter your email addressPlease enter a valid email addressPlease enter a valid email address SIGN UPThanks for signing up to the INDY/LIFE newsletter{{#verifyErrors}} {{message}} {{/verifyErrors}} {{^verifyErrors}} {{message}} {{/verifyErrors}}The Independent would like to keep you informed about offers, events and updates by email, please tick the box if you would like to be contacted
Read our full mailing list consent terms here
INDY/LIFE Newsletter
Be inspired with the latest lifestyle trends every week
SIGN UPThe Independent would like to keep you informed about offers, events and updates by email, please tick the box if you would like to be contacted
Read our full mailing list consent terms here
- Bitcoin price hits new all-time high
- Cryptocurrency experts make predictions for 2021
- How bitcoin performed in 2020 compared to gold, oil and the stock market
- JPMorgan strategists predict bitcoin price could rise above $100,000
Show latest update 1610354789
Bitcoin price crashes
The price of bitcoin fell by $8,000 over the weekend, briefly dipping below $34,000.
The cryptocurrency has since recovered somewhat and is currently trading above $35,000.
Remarkably, despite the latest price crash, bitcoin is still 10 per cent up since this time last week.
Anthony Cuthbertson11 January 2021 08:461610101870
Expert reaction
We’ve reached out to market analysts and cryptocurrency experts to hear their take on the latest $40k milestone being breached.
Bitcoin smashing through $40,000 proves that the Covid crisis is powerful enough to shift the incumbent monetary order. The new all-time high is palpable evidence of a major social conversion – a metamorphosis from a dollar-dominated economy to blockchain-based, deflationary, and limitless finance.
Antoni Trenchev, co-founder and CEO of Nexo
The US$40k mark is the latest in a series of landmarks that act as proof of the trust and confidence that is building in Bitcoin as more and more people are recognizing it as a reliable alternative store of value to that which has been used for generations.
It is estimated by some that the value of all money in the world is approximately $90 trillion. The more that people perceive that their assets, particularly their liquid assets such as fiat currencies are eroding in value, the more they will look for alternatives.
Geoff Morphy, President of Bitfarms
Bitcoin reaching $40,000 is a historic milestone in a string of several, recent historic milestones.
It was only a short time ago that people debated whether bitcoin could compete or replace gold as a store of value. Now, a number of institutions are actually choosing bitcoin over gold. In turn, this has created a network effect propelling adoption into escape velocity.
We should continue to be aware that BTC and other cryptocurrencies are volatile assets. On 4 January, BTC fell by 17 per cent in one day but quickly recovered and has now reached the $40k mark. This is just one of many examples where BTC has recovered quickly from a sharp decline in price, which indicates we are likely just at the beginning of a long-term upwards price trajectory.
JC, (CO) at Komodo
Anthony Cuthbertson8 January 2021 10:311610100975
Up 36% in 7 days
Bitcoin has slipped back below $40,000 overnight, but not by much.
The cryptocurrency remains up 7 per cent from this time yesterday, and a remarkable 36 per cent since this last week.
Anthony Cuthbertson8 January 2021 10:161610044481
$40,000
Bitcoin just hit another new all-time high, this time a major milestone.
Bitcoin breaks $40k as price continues record-breaking run
The price of bitcoin has passed $40,000, just days after breaking above $30,000 for the first time.
Anthony Cuthbertson7 January 2021 18:341610018277
Bitcoin hits new all-time high
Bitcoin has hit a new all-time high for the third time this week, rising above $37,700 on Thursday morning.
Anthony Cuthbertson7 January 2021 11:171610018163
One trillion dollars
The combined market cap of all cryptocurrencies has passed $1 trillion for the first time ever.
Cryptocurrency market tops $1 trillion for first time
‘I believe that bitcoin has not given it everything it’s got quite yet,’ one analyst predicts
Anthony Cuthbertson7 January 2021 11:161609956715
On track to surpass Apple and Google?
As bitcoin continues to trade at close-to-record highs, we’ve heard from market analysts and cryptocurrency experts with their reaction to the latest price movements.
Here’s what they have to say:
The king of crypto is on course to surpass the market caps of Apple, Google and Facebook.
The scramble of institutional investors into the fray with orders to buy bitcoin are a stark recognition of the quantum leap that bitcoin technology represents.
Paolo Ardoino, CTO of Bitfinex
Bitcoin price has been surging with only a few short interruptions for three straight weeks.
I believe that bitcoin has not given it everything it’s got quite yet. The coin’s past behaviour indicates that the cycle is still far from over, and I expect that bitcoin will not only return to the previous heights but that it can hit $50,000 by the end of this quarter.
By the end of the year, I expect the coin to be somewhere around $90,000.
Konstantin Anissimov, executive director, CEX.IO
Anthony Cuthbertson6 January 2021 18:111609929770
Bitcoin market cap compared
Following the latest price surge, here’s how bitcoin’s overall market value compares to other assets:
Anthony Cuthbertson6 January 2021 10:421609925017
BREAKING
Bitcoin has just surged to a new all-time high.
Bitcoin price hits new all-time high
Cryptocurrency now more valuable than both Mastercard and Visa
Anthony Cuthbertson6 January 2021 09:231609852710
JPMorgan strategists predict more gains to come
Bitcoin’s nine-month market surge may be just the start of a far greater price rally, according to strategists at JPMorgan Chase & Co.
A note from the investment banking giant predicted it could rise a further 4.6 times to $146,000.
It is the second bullish prediction made by analysts at a Wall Street bank in recent months, following an even more bold forecast of $300,000 in a Citibank report.
Read the full story here:
Bitcoin price to rise another 4.6-times, JPMorgan predicts
‘A crowding out of gold as an alternative currency implies big upside for bitcoin over the long term,’ analysts say
Anthony Cuthbertson5 January 2021 13:181234
