Thought Leadership
Bitcoin is chasing from record to record. When will the rally come to an end?
Bitcoin reached another record high on Monday night. The price of the oldest and best-known cryptocurrency rose to 106,533 US dollars on the Bitstamp trading platform. The price had recently fallen again slightly, but at 105,000 dollars was still around 4,000 dollars above Friday evening’s level.
Bitcoin has been on an upward trend for almost two years, taking the price from less than 20,000 dollars to six-digit heights. The most recent driver of the rally was the election of Donald Trump as the new US president. Since then, the share price has risen by around half. Trump is seen as a supporter of cryptocurrencies.
Bitcoin is also being supported by expectations of further interest rate cuts by major central banks. The US Federal Reserve will publish its interest rate decision on Wednesday evening. A further interest rate cut of 0.25 percentage points is expected.
According to a list from the provider Coinmarketcap.com, the market value of Bitcoin is currently just under 2.1 trillion dollars. That is around 56% of the total market capitalization of 3.7 trillion US dollars of all of the more than 10,000 cryptocurrencies.
dpa
