CNN Business reports the price for bitcoin spikes for about more than 180% since mid-March. The weakening US dollar index in the past few months seem to have majorly affected bitcoin’s price. Though bitcoin trading sounds promising, it is still as volatile and unpredictable as ever.
Bitcoin values more than $10,000, spikes the highest level in a year
According to the CNN Business report, the price of one bitcoin now values just above $11,500. This immense growth occurred after the cryptocurrency previously scored the worst for 2020 in March, valuing only about $4000. Bitcoin spikes more than 60% in 2020 and recorded the highest level in the concurrent year. Experts suspect the bitcoin value might have surged due to the weakening US dollar in the past few months. They further add that as the weaker dollar gets by inflation, it is not impossible for bitcoin to strive through and rise higher.
Does bitcoin mirror gold’s spikes?
The Public’s interest in gold and bitcoin is comparably different. Bitcoin’s extreme volatility most of the time scare investors, especially newbies. However, the sudden spike in bitcoin is somewhat similar to the rise of gold. Recently, gold has valued more than $2,000 an ounce. CNN Business quoted Will Rhind, CEO of ETF manager GraniteShares, that mentioned that investors are starting to look for alternatives to stocks, bonds, and the dollar, and bitcoin has become the alternative chosen. Despite the trend in bitcoin investment, Rhind is unsure its popularity will exceed gold, due to the lacking “universal appeal”.
Experts doubt bitcoin will rise higher than it already is
James Putra of TradeStation Crypto stated that cryptocurrency’s safety is still being questioned by a lot of sides. The issue gets louder with the recent cryptocurrency scam scheme through influential people Twitter’s hack. Experts further doubt that the price of bitcoin will surpass the highest record in 2017, valuing at $20,000.