Bitcoin hits record high of $20,000
Bitcoin reached an all-time high, surpassing $20,000 on Wednesday.
Just after 1pm GMT, the Bitcoin price – the world’s largest cryptocurrency by market capitalisation – reached $20,637.18 as per the deVere Crypto exchange.
Two weeks ago, it was reported that Bitcoin narrowly missed on reaching the record highs of $19,850 in December 2017.
As I was quoted by Forbes, The Guardian and City AM, amongst other media, in recent months, we’ve said many times that Bitcoin will likely surpass its previous all-time high before the end of this year. And today it has.
Since Bitcoin’s March lows of $3,600, the cryptocurrency has risen 440%, thus making it one of 2020’s best-performing assets.
Of course, many investors and crypto advocates will be thrilled they kept their Bitcoin and didn’t sell.
Unlike previous price surges, a principal price driver looks to be fuelled by the flow of institutional investors, who have been progressively increasing their exposure to Bitcoin and other digital currencies.
The good returns currently being offered, as well as the huge future potential of Bitcoin, are the main attractions.
As more of the world’s biggest institutions, including Wall Street giants and multinational payment firms, pile into crypto and bring their vast expertise and capital with them, consumer interest also rises.
Furthermore, another key motive for the increase in Bitcoin’s price is because it is a hedge against longer-term inflation concerns which have been intensified recently with massive stimulus packages, with central banks and governments around the world promising more are on the cards.
Such emergency measures, like these stimulus packages, reduce the value of traditional currencies like the dollar, thereby increasing the inflation threat. Like gold, Bitcoin acts as a shield.
In addition, interest in cryptocurrencies is also on the rise due to other integral traits such as the fact they are borderless, meaning they are ideally suited to a globalised world of commerce, trade, and people; they are digital, to match the increasing digitalisation of our world; and also, demographics work in cryptocurrencies’ favour as younger people are far more likely to get behind them than older generations.
After a year full of highs and lows within financial markets, Bitcoin holders will now enjoy a very Merry Christmas, and look ahead to what looks set to be a momentous 2021 for Bitcoin.