Bitcoin Surges by More Than 37% Against US Dollar This Week, Taps $28K on Sunday
Bitcoin, the leading cryptocurrency, has seen a remarkable rise in value in the last week, culminating in a high of $28,422 per unit on Sunday at around 3 p.m. Eastern Time. Over the last seven days, Bitcoin has increased in value by 37.9% against the U.S. dollar, and its overall market capitalization has swelled to $546 billion. With such a meteoric rise, many investors are looking to understand the reasons behind this trend and its potential impacts on the market as a whole.
One reason cited for Bitcoin’s recent surge is the oversupply of U.S. dollars. The COVID-19 pandemic has led to unprecedented government borrowing, printing, and other forms of monetary stimulus in the US. This increase in U.S. dollars in circulation has caused a drop in the value of the currency overall, and many investors are turning to alternative digital currencies like Bitcoin to protect their investments.
Another potential factor could be the growing recognition of Bitcoin’s legitimacy and widespread adoption. More and more institutions, including major companies like PayPal and Tesla, are investing in Bitcoin and other digital assets, which raises the profile of these currencies among the wider public.
Whatever the reason, the global cryptocurrency market valuation has increased by 1.11% to $1.18 trillion, and Bitcoin remains the dominant player, with a market share of over 45%. This domination is unlikely to waver any time soon, with Ethereum, the second-largest cryptocurrency by market cap, accounting for just 18.8% of the market.
Bitcoin’s rise has been met with some skepticism, with critics warning of the potential for market volatility and the potential dangers of speculative investing. However, proponents argue that cryptocurrencies offer a new level of security and control over personal finances, as well as the potential for long-term financial gains.
As Bitcoin continues to rise, traders are watching closely to see what the market will do next. Some investors are taking a “wait and see” approach, while others are piling into Bitcoin as quickly as possible, hoping to take advantage of the current bull run before prices level out.
Overall, Bitcoin’s recent surge is a testament to the growing popularity and legitimacy of digital currencies. Investors are increasingly considering cryptocurrencies as part of their investment portfolios, and this trend shows no signs of slowing down. However, like any asset, Bitcoin is subject to market forces, and its financial health should be monitored closely by savvy investors.