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Bitcoin tops $30k for the first time over the weekend

Yahoo Finance’s Dan Roberts joined Yahoo FinanceLive to break down the latest Bitcoin news as the cryptocurrency topped $30,000 for the first time over the weekend.

Video Transcript

SIBILE MARCELLUS: Now, Bitcoin was on a red-hot winning streak as we closed out 2020. But it has since lost some steam, as we have our first day of trading in 2021. I want to bring in Yahoo Finance's Dan Roberts to break it down for us. Dan, was this Bitcoin pullback just inevitable?

DAN ROBERTS: Yeah, it was inevitable, Sibile. I think you were likely to see some profit taking from people who had seen huge gains. I mean, Bitcoin went up 296% in 2020. And then in the first two days of the new year, it just kept rocketing. Think about it this way-- bitcoin took 10 years in existence to get to 20,000. Then it went from 20,000 to 30,000 in two weeks.

And let's also make sure that all of our viewers understand-- not everyone understands cryptocurrency-- there is no market close for Bitcoin. This may be the first day of trading for stocks, but Bitcoin trades all the time. And so you did see a little bit of a correction this morning, as you mentioned. I mean, it fell as much as 4%.

Were already way back up. We're not at record highs. But it has made up a lot of the ground it lost. And I think you are going to see people sell some off to take profit, for sure.

Now the question moving forward will be-- you know, Bitcoin has really surged, thanks to the pandemic. A lot of people will tell you, thanks to the economic effects of the pandemic. You know, any time you have governments stepping in, printing money, giving out stimulus checks, supposedly, it kind of strengthens the appeal of Bitcoin as an investment. It's scarcity, it's as a hedge, it's digital gold.

So if and when the pandemic ends and things return to some sense of normalcy and the economy starts to rebound, will that hurt Bitcoin? Will Bitcoin's gains kind of stop? And obviously, it's a very volatile asset. I mean, look at the last 48 hours. But volatility has become kind of what everyone expects, if you hold cryptocurrency.

SIBILE MARCELLUS: Right. Volatility is the norm when you're talking about Bitcoin and cryptocurrency. Dan Roberts, thanks so much.