Bitcoin reached fresh new heights above $20,000 for the first time in history. The most well-known cryptocurrency that blew up recently was slowly being forgotten. But the cryptocurrency broke above the $20,000 level around 8:30 A.M EST according to CoinDesk figures. To be exact, it rose to as much as $20,817 at approximately 9:15 A.M.
The price point of bitcoin typically high from the beginning of the year of about 190 percent and nearly 440 percent from its 2020 low of less than $3,900 reached in March.
The current figure is significantly different from the rally that pushed bitcoin prices to an all-time high in late 2017. The main factors for the rise in there were trends like strong retail interest and widespread media coverage, this latest rally has taken place amid a global pandemic and rising institutional adoption.
Due to the coronavirus pandemic and the lockdown policies, industries around the world were brought to a standstill to which many governments responded by printing out stimulus cheques. Though these measure might be useful, it would ultimately result in fiat currencies like the US dollar losing its purchasing power.
Experts speculate that this could be the reason why digital currencies are the future.
Many institutions have been making large visible purchases of bitcoin including MassMutual and MicroStratergy.
It will be interesting to see what price and at what levels bitcoin will increase after setting an all time record.
Denis Vinokourov, head of research for London-based digital asset firm Bequant, spoke to this situation, stating that:
“Now that Bitcoin has passed $20,000, expect another wave of retail flow to materialize and drive the leading crypto asset higher.”
“FOMO is now in overdrive, as people who missed out on the last run to nearly $20,000 don’t want to stay on the sidelines again.”
“Increasing institutional adoption will further support this rally and should easily help prices consolidate, setting the stage for a run towards $25,000 as we head into the new year.”
