Bitcoin rose to more than $ 16,000 on Thursday, its highest level since January 2018, after previous highs in recent weeks.
The last time Bitcoin hit the $ 16,000 level was on January 8, 2018, according to CoinDesk data. The reason for the rally on Thursday was not immediately clear, but it comes at a time when it appears that a number of companies are heading towards cryptocurrencies.
Investors hope that more US central bank stimulus to support economies affected by the COVID-19 pandemic will lead to an increase in the value of digital assets.
Bitcoin has been on the rise over the past few weeks, after digital payments company PayPal announced that it would enable purchases using virtual currencies on its platform.
The news reinforced long-term expectations that Bitcoin and its competitors could become a more viable method of payment, a goal that had previously been elusive.
Bitcoin investors and enthusiasts are also pinning their price hike hopes on more clarity from global financial regulators on the rules for cryptocurrencies, and increased accreditation by major finance companies.
It is noteworthy that a sharp improvement is not common in cryptocurrencies, and is usually followed by a steep decline, and this is accompanied by the presence of many experts who are at a loss to determine a clear reason for the change of trend.
The price of Bitcoin rose to more than $ 20,000 in December 2017, and then fell by 50 percent the following month.
“Bitcoin does not rise or fall for macroeconomic reasons, such as quantitative easing or real investor decisions,” David Gerrard – a cryptocurrency expert and author of a book on the virtual currency (Libra) led by Facebook – said earlier. He added, “The market is weak and manipulated, and every price change is fully explained by internal market problems.”