The value of the digital currency Bitcoin rose to more than 34 thousand dollars, setting a new record for this leading cryptocurrency.
The currency’s gains this year were estimated at about $ 5,000, although by 17:00 GMT, the price had fallen to about $ 33,000, according to the Coindesk website.
The reason for the decline is due to the large investors seeking to reap quick profits.
While the value of the US currency rose in March with the beginning of the spread of the Corona virus epidemic, as investors sought safety amidst uncertainty, it has since decreased due to the great stimulus from the US Federal Reserve. The currency ended last year with its biggest annual loss since 2017.
The digital currency has recently gained increasing support as a form of online payment, and the e-commerce site PayPal is among the newest users of digital currencies.
But the cryptocurrency has also proven very volatile.
The higher price raised fears that Bitcoin might head for a dramatic price correction, as it did three years ago when the value collapsed after an upward wave.
Bailey said, “I must be honest, it is difficult to see that Bitcoin possesses what we tend to call intrinsic value,” adding, “ Perhaps its value was external, meaning that that value comes from people’s appetite for Bitcoin.”