Bitcoin reaches all-time high price but fails to maintain it

On Sunday, December 27, bitcoin (BTC) touched its highest price in history, reaching $28,352.63. However, it failed to hold and in a matter of an hour fell 6.66 percent.

The digital currency experienced a frenzy during yesterday's trading day on December 28. It reached a peak in the early morning of the 28th that it could not sustain and dropped to a price of 27,011.82. Bitcoin surpassed $20,000 for the first time on December 16; the next level the market expects to see is $30,000 per unit.

investors have been pouring money into bitcoins and other cryptocurrencies during the COVID-19 pandemic, as the U.S. Federal Reserve sent interest rates close to zero (and expects to keep them there for several more years), severely weakening the U.S. dollar.

That makes bitcoin, comparatively, an attractive currency. There is a set limit to the amount of bitcoins on the planet, and investors believe that once the supply is exhausted, the value of the digital currency can only increase.

The note adds that it also helps in bitcoin's growing valuation that big name brand investors are hoarding it and large consumer companies are adopting it.