Bitcoin hits another record high
17 Dec 2020
Bitcoin reached another all-time high on Thursday, rising 6.5% to $22,765 by 08:33 GMT, the day after it smashed through the $20,000 mark for the very first time.
The world’s largest cryptocurrency by market capitalisation has gained over 175% in 2020, bolstered by demand from larger investors attracted to the digital currency’s potential for rapid gains and its ability to act as a hedge against inflation, Reuters reports.
The latest Bitcoin rally has partly been fuelled by rising expectations that the cryptocurrency will soon become a mainstream payment method.
According to Yang Li, Chief Growth Officer at digital foreign exchange platform Ziglu, personal money apps were at the helm of ensuring easy, secure and rapid access to cryptocurrencies.
“Wider adoption will grow the value of Bitcoin even more, this is just the start,” Li said.
Speaking about Bitcoin smashing the $20,000 milestone, deVere CEO and founder Nigel Green stated: “We’ve been saying for a few months now that Bitcoin is likely to surpass its previous all-time high before the end of this year – and it now has.”
He added: “Unlike previous surges, this time around, a major price driver seems to be fuelled by the flow of institutional investors, who are steadily increasing their exposure to Bitcoin and other cryptocurrencies.
“They’re being attracted by the good returns that the digital asset class is currently offering but, more importantly, by the huge future potential it offers.
“As some of the world’s biggest institutions – amongst them multinational payment companies and Wall Street giants - pile ever more into crypto, bringing with them their enormous expertise and capital, this in turn, swells consumer interest.”
As well as Bitcoin, Ethereum also hit new year-to-date highs on Thursday, after gaining 8.5% on Wednesday, Cointelegraph reports.
At the time of writing, on Thursday the price increased to a local top of $656, with the markets around 0.5% above Wednesday’s closing price of $640.