December
has long been called “the month of cryptocurrency” as it is at this time of
year that fundamental events occur that affect the exchange rate of virtual
coins. Thus, 3 years ago in December Bitcoin set a new record reaching $19,666,
and in December 2020, all investors received a gift of a new historical high. Bitcoin
was traded at $19,864 yesterday.
Major digital gold rose by 175 percent in total
over the year.
Investors in
cryptocurrency say they expected similar dynamics amid a weakening US dollar
and a slow depreciation of gold. Furthermore, owing to the support of Bitcoin
by large payment systems, the level of potential investors’ trust has risen
significantly and the currency has become of more interest. At the same time,
the cryptocurrency is known for its high volatility, but investors give
extremely optimistic forecasts and are confident that Bitcoin will continue to
grow.
Despite a
large number of contradictory facts about cryptocurrency, people seem to
gradually start to believe in the viability of this kind of asset. This is
confirmed by statistics from PayPal experts. As it turned out, over 65 percent
of the respondents said that they were willing to use Bitcoin in everyday life.
Similar data were obtained during a study conducted by the investment division of
the Japanese bank Mizuho in the United States.
About 1 out
of 5 users of the international payment system have already experienced the
benefits of using digital money on a personal level. Amid favorable market
conditions, PayPal and Square stock prices have risen sharply, which also influences
Bitcoin price dynamics.
The chief executive of BlackRock said that Bitcoin
has every chance of becoming an international global asset. Larry Fink noted
that despite the modest size of the cryptocurrency market it has already
attracted a large number of people, which is why its volatility is growing day
by day. Fink believes that Bitcoin has a greater impact on the US dollar than the
US dollar on Bitcoin, which has already been noticed by large investors. By the
way, last summer the BlackRock chairman urged the world community to use
cryptocurrency for international transactions to reduce the commissions.
As of the
morning of December 2, the Bitcoin exchange rate ranged from $18,500 to $19,100.
Such swings led to the financial market overheating. New buyers who actively accumulated
their assets last month could not cope with the stagnation and began to close their
deals en masse. This caused a price correction.
Given the
current news, independent experts predict that digital gold will continue to
grow rapidly. Moreover, it is expected that it would be worth over $20,000 this
week. The major risk for Bitcoin is the end of the pandemic. Surprisingly, the
exchange rate of this asset greatly depends on how successful research is into
developing a universal vaccine against coronavirus. Once people leave virtual
life, interest in digital coins will begin to wane.