New price rally: Bitcoin cracks the USD 118,000 mark

At more than 118,000 US dollars, Bitcoin is worth more than ever before, meaning that the price of the most important cryptocurrency by far has risen by more than 20 percent since the start of the year. The news agency Reuters attributes the latest price increase to purchases by institutional investors and the actions of the US government, which is particularly friendly towards cryptocurrency. There was also a noticeable rise in the price of smaller cryptocurrencies this time, with the price of Ethereum rising by more than 6% on Friday, although the all-time high is still some way off.

According to data from CoinMarketCap, the most recent price rally only began on Thursday, when it went from just over USD 110,000 to its current level of USD 118,000 within hours. There is no specific reason for this, but Reuters quotes an industry expert from Hong Kong as saying that institutions are investing “relentlessly” and skimming off the supply. At the same time, it looks as if Donald Trump will reignite the trade dispute with the rest of the world, which also affected the price of Bitcoin the last time. It is therefore not yet clear what will happen next.

Shortly after Donald Trump's election victory in the fall, Bitcoin cracked the USD 100,000 mark for the first time and is now almost 20% higher. However, there was also a long dry spell in between, during which the cryptocurrency even plummeted to below 80,000 US dollars. So the largest cryptocurrency has by no means left the immense fluctuations in value behind it. Donald Trump, on the other hand, was a critic of cryptocurrencies during his first term in office and feared for the supremacy of the US dollar at the time. In the most recent election campaign, however, he changed his stance. In return, his election campaign received millions in donations from the industry.

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