The value of Bitcoin crossed the $ 20,000 barrier for the first time in history on Wednesday, as cryptocurrency enthusiasts attributed this to increased demand from institutional investors for the world’s most popular cryptocurrency.
The world’s most valuable cryptocurrency also traded, with an increase of 5.6 percent, raising its price to about $ 20,600, according to market data from Coin Metrics, raising 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 to the cryptocurrency, and major tech companies such as Square and MicroStrategy have begun to support buying using Bitcoin.
“This is the domino effect, as asset managers flip their portfolios into bitcoin,” Charles Hayter – CEO of the data provider for the crypto market CryptoCompare – told press sources.
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 rise 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 opaque compared to traditional assets, such as stocks or bonds.
Its rise this year prompted some investors to claim that the price of the cryptocurrency may increase 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.