Bitcoin, the most popular cryptocurrency around the world, crossed the value of $ 18,000 to record its highest value in three years, as investor demand for it continued to increase.
The currency has suffered significant fluctuations in its price since its launch in 2009, and during the pandemic period, investors resorted to cryptocurrencies, driven by the instability of global stock markets, which led to the currency’s value increasing by more than 7% to reach $ 18,715, to record its highest level since December. In 2017, there are still concerns about fraudulent cryptocurrency trading after a series of successful attempts to hack it, and experts have warned that it is considered a “safe haven” for investors.
Usually, in critical times of market volatility, investors tend to withdraw their money from the stock market and invest in what they consider a safe haven, such as cash and gold.
Some believe that digital currencies are a shelter from stock market changes, as the most important thing that attracts investors in Bitcoin is the limited number of nearly 21 million, and some believe that this scarcity will create an essential value for Bitcoin that protects it from inflation, which is a source of concern for investors.
PayPal also announced last month that it will allow its customers to buy, sell and own bitcoin and other digital currencies using PayPal accounts, which they will be allowed to use to purchase from 26 million sellers that accept payments through PayPal accounts, and plans next year to start considering cryptocurrencies as a source of funding.
In another context, experts warned of the increasing volatility of Bitcoin prices, as the increased trading volume will cause it to reach the value of $20,000, and traders should expect fluctuations in the price of the currency at a value of $1,000 within just minutes.
Some believe that the recent rise in the price of Bitcoin was due to the fear of missing out on buying opportunities.