The price of Bitcoin surpassed $ 20,000 on Tuesday, reaching a new record on Wednesday, and continued with a dizzying rise in the cryptocurrency.
Bitcoin rose 7.2 percent to an all-time high of $ 20,890.11, about two weeks after posting its last record high on Dec. 1, according to data from cryptocurrency site CoinDesk. Digital currencies recently traded around 6.1 percent, at $ 20,681.16.
The value of the world’s largest cryptocurrency has nearly tripled in value this year as it attracted investors eager for quick gains and resistance to inflation.
It has also been bolstered by the hope that it will become a more widely used payment method, as major digital payment companies such as PayPal and Square allow Bitcoin on their platforms.
Cryptocurrency sponsors say this concentration is different from the 2017 rise that pushed Bitcoin to near $ 20,000, as it has been driven by the interest of institutional investors, along with big names like Stanley Druckenmiller and Paul Tudor Jones, rather than the speculation of small traders. according to CNBC.
S&P Dow Jones Indices, the Wall Street giant behind the S&P 500 benchmark, recently announced plans to launch cryptocurrency indices next year, making it the latest name in traditional finance to immerse your finger in water.
“We have seen a significant shift in the demographics of those interested and investing in cryptography,” Yoni Assia, co-founder and CEO of online investment platform eToro, told CNBC. “[It’s] it is no longer the domain of computer programmers and fintech technology advocates. “
Anthony Denier, CEO of e-commerce platform Webull Financial, said he has seen first-hand the new rise of Bitcoin, which has registered more than 250,000 new users to trade with cryptography in less than a month.
“20k is a psychological number,” Denier said. “Does it mean anything technically? No, but it’s something that people have to come together for and give legitimacy to the argument that this is no longer an asset. “
With Thornton McEnery