Having broken its earlier record over the weekend, bitcoin traded at $35,842 on Wednesday.
The cryptocurrency then dropped to $34,630 as bitcoin continued to draw interest from investors.
Several reasons have been attributed to bitcoin quadrupling its value in the last year, according to Bloomberg.
Reasons given include JPMorgan Chase & Co.’s long-tern price forecast of bitcoin eventually reaching $146,000.
Others cited the current instability of the markets due to Covid-19, with many treating it as a stable investment similar to gold, which is traditionally the go-to commodity people trade in during troubling times.
Nevertheless, some voices still suggest that investors pumping money into bitcoin may inflate an unsustainable bubble, given the cryptocurrency’s volatile history.
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