Bitcoin breaks $34,000 mark as record rally continues
Bitcoin continued its record-breaking rally today, topping $34,000 just hours after breaking the $30,000 milestone for the first time.
The cryptocurrency set fresh records in the first weekend of 2021 as a surge in interest from investors pushed its price higher.
Bitcoin topped $34,000 early today, before settling at just over $33,400 by mid-afternoon.
The latest rally comes after the digital currency gained more than 300 per cent in 2020. It has added more than 50 per cent since crossing the $20,000 mark just two weeks ago.
It is the first surge for Bitcoin, which was created only about a decade ago, since December 2017, when it jumped to just under $20,000.
This was followed by a flash crash just days later, when it lost a third of its value in 24 hours.
The volatile currency, which is created and traded using blockchain technology, has grown in popularity among institutional investors in recent weeks.
It is considered by many investors to offer an attractive hedging option against traditional financial markets, while some have viewed it as a safe-haven asset during the Covid-19 pandemic.
Analysts have said they expect Bitcoin’s bullish run to continue in 2021, though some have urged caution.
Naeem Aslam, chief market analyst at Ava Trade, said: “The reality is that the Bitcoin price has gone too far and too fast, and any upward move in the digital assets is pushing the relative strength index further in overbought territory on the daily time, which should be taken as a caution.”
Ethereum, the world’s second largest cryptocurrency, gained 465 per cent last year and was also trading higher this weekend.