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Bitcoin surges past $34,000 mark...then drops to below $30,000

Bitcoin surges past $34,000 mark...then drops to below $30,000

It's a happy new year for holders of bitcoin, with the value of a single coin surging past the $34,000 mark on Sunday.

The cryptocurrency entered the New year wth a bang, reaching an all-time high of $30,000 on 2 January.

The pandemic, and growing institutional investor activity in the market, has put rocket boosters under bitcoin. The currency rose by 300% in 2020, passing its previous record valyue of $20,000 in December

The sharp rise is being aided and abetted by Federal Reerve stimulus efforts which has seen investors taking shelter from a faltering US dollar.

The soaring price has raised concerns that Bitcoin is due for a dramatic correction, as happened three years ago when the value collapsed after a bull run.

Indeed, by mimorning UK time the cryptocurrency had shed many of its gains, dropping 13% to a little over $29,000.

Bitcoin isn't the only game in town, with the value of Etherium tokens surpassing $1000, bouoyed by the rising tide.

Antoni Trenchev, co-founder and managing partner of Nexo says:

“Ethereum at $1K is no nine-day wonder. From the retail perspective, the ETH rally is a collateral effect of the psychological barrier posed by BTC’s ~$30K valuation - a steep price to many. This effect is magnified by the fact that ETH, even at $1K, is still far from its 2018 peak of $1,432, making the current price more appealing.”

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