The price of bitcoin has once again amazed the masses, once again surpassing $ 40,000 per coin on crypto exchanges worldwide. With a global trading volume of more than $ 28 billion, the total market value of the leading cryptocurrency is now a whopping $ 728 billion.
** This post was updated at 1:50 PM (EST) to reflect the recent price drop.
Bitcoin’s value is increasing
On January 7, 2021 Bitcoin (BTC) has surpassed its previous all-time high (ATH) it hit earlier in the day, hitting $ 40k on Thursday afternoon. The cryptocurrency’s dominance index compared to the value of the rest of the crypto-economy today is 68.8%. The price is up $ 20,000 higher than the earlier ATH set three years ago in 2017. Thursday, bitcoin (BTC) peaked at $ 40,382 at the time of publication.
There are currently 18.5 million BTC existing (88.54%) and there is only 13.51% left for bitcoin miners to mine. Such as news.Bitcoin.com reported during our latest market update, BTCIt’s hashrate is very high.
The total hashrate fluctuates between 150 and 160 exahash per second, because miners spend a lot of computing power on the chain. Miners today only get 6.25 BTC pay per block and bitcoin inflation rate per year is only 1.78% at 900 BTC issued per day.
The next Bitcoin (BTC) halving is expected in 1,215 days or on or around May 7, 2024. At that point, bitcoin inflation will be 0.84% per year at the next block halving event. While the global economy is uncertain, Gavin Smith, the CEO of Panxora, believes market players are protecting their wealth with the major cryptocurrencies.
“It is no surprise that the world is currently looking at bitcoin. The price is rising as the aftereffects of COVID’s monetary stimulus measures continue to give cause for inflation concerns, ”Smith said. BTC approached the $ 40k handle.
The Panxora manager added:
As a result of quantitative easing, market participants use bitcoin to hedge against instability. But while further growth is inevitable, investors should not expect it to be in a straight line.
The perfect storm
Bitfinex’s CTO, Paolo Ardoino, says that “bitcoin is rising in the eye of a perfect storm” commenting on BTCThursday’s rapid rise.
“The backdrop is one of ongoing global macroeconomic uncertainty that has the potential to devalue fiat currencies. High Finance’s embrace of digital gold could potentially be followed by retail as the market cap of all cryptocurrencies hit $ 1 trillion for the first time, ”added the Bitfinex CTO.
Meanwhile, for the past 90 days, BTC is one of the best performing assets worldwide, up more than 250% in the last three months. In conjunction with the US dollar, bitcoin (BTC) rose over 375% during the year. At press time, the price is well above the $ 40k zone and continues to rise.
** On January 7, 2021, at approximately 1:30 p.m. EST, bitcoin (BTC) dropped to a low of $ 36,540 per unit in a short period of time at -9.55%.
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