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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.

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

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

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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