FX.co ★ Bitcoin extends its record-breaking rally

The value of bitcoin has once again hit a new all-time high. The new year started positively for the world's best known cryptocurrency. Bitcoin climbed above $34,000 per coin, notching another winning streak.

The biggest and original cryptocurrency recorded a sharp rise in value, gaining as much as 16% in a very short period of time. On December 2, 2020, bitcoin experienced a meteoric four-fold surge, setting new record highs. Billions of dollars injected into the economy by the Federal Reserve and other central banks are pushing market participants into risky investments. In addition, the cryptocurrency is extending gains amid growing confidence that vaccines can help end the coronavirus pandemic.

As of December last year, around 19 million bitcoins were mined. In 2021, their total number could reach 21 million. Nevertheless, demand continues to exceed supply, while the cryptocurrency is expected to keep growing. At the same time, nearly 4 million bitcoins are lost forever due to forgotten passwords or damaged mining equipment.