Bitcoin has finally breached another landmark price point as the cryptocurrency meets expectations of breaking through the $30,000 per bitcoin threshold, a level at which many predicted in December 2020 after an impressive year of growth.
Reaching $30,823.30 at 13:13 GMT, the token once again broke to a new all-time high price to fall into line with widespread speculation that it would achieve that level mid-last month after it broke past the $20,000 band into new heights.
The increase in price will not be a shock to many as bitcoin comes into 2021 after a year of quadrupling in value following interest from large investors that were looking to hold their funds in something other than fiat funds with a weakening USD and GBP.
The weakening of the United States Dollar is also the reason that many believe that this new height is not the end of the impressive climb for the token, as further investment institutions look to move assets out of other markets into what has been dubbed as ‘digital gold’.
Alongside a fiat currency fall, bitcoin has benefitted from increases exposure with not only the media picking up on the increases that the token has recorded but also the fact that online payment giants Paypal announced that they would be looking to incorporate the ability to purchase cryptocurrency directly through any user account once they roll out their implementation.
As with everything, an increase in demand and limited availability level will be set to potentially force Bitcoin prices even higher, with some investors and analysts predicting that bitcoin could even reach as high as between $200,000 – $500,000 per bitcoin by this time next year.
Although a potentially bullish outlook on the future of the coin, it certainly looks like the new all-time high is set to be tested and depending on the resistance that each breakthrough faces, it could well be closer to $100,000 per bitcoin before we know it.
Will bitcoin prices drop after this new all-time high?
Bitcoin has a proven track record as being one of the most volatile investment markets and looking back just 3 years ago we saw that the token pumped in price before a baron 3 year period saw the price of the coin falling to as little as 85% of the current price it currently holds.
Each price breakthrough is often met with ‘resistance’ in which those that have invested look to sell their bitcoin to take some of the profits that they have made, but recent drops have seen a re-climb as popularity of the investment becomes widely published across the world media.
Expect to see some form of price drop relating to the selling of bitcoin by some investors, however with the further adoption of the cryptocurrency coming into force and strategies for many companies including holding some of the tokens, potentially the drops are not going to be as alarming as many would predict.