Value exceeded Currency Bitcoin barricaded $ 20,000 for the first time in history on Wednesday, as cryptocurrency enthusiasts attributed it to increased demand from institutional investors for the world’s most popular cryptocurrency.
The world’s most valuable cryptocurrency was also trading, an increase of 5.6 percent, which raised its price to about $ 20,600, according to market data from Coin Metrics, Which raised its gains so far to more than 180 percent.
Bitcoin has been in a rupture this year. Analysts say: It got a push from big-name investors, such as Paul Tudor Jones and Stanely Druckenmiller, who converted their assets into the cryptocurrency, and major tech companies such as Square and MicroStrategy have begun to support buying using Bitcoin.
(Charles Hayter) – chief data provider for CryptoCompare Market – told CNBC CNBC: “This is the domino effect as asset managers flip their portfolios into bitcoin.”
The latest record rally in Bitcoin reminded many market watchers of its colossal rise of close to $ 20,000 in 2017. A sharp decline followed the following year when its value plummeted to nearly $ 3,000.
Cryptocurrency missionaries claim that the 2020 rally is different from the 2017 high, because the former is driven by institutional buying, rather than individual-based speculation.
Bitcoin’s 12-year history is punctuated by bitter gains and equally steep declines, and its markets remain very murky compared to traditional assets, such as stocks or bonds.
Its rise this year has prompted some investors to claim that the price of the cryptocurrency may increase by five times compared to its current price, so that its value may reach $ 100,000, which attracted the attention of skeptics who say: It is purely speculative.