Bitcoin has done it. The currency has shot beyond the $20,000 per unit mark, and the asset is now bigger than it has ever been in its short, yet stellar history.
The Bitcoin Price Has Surged to a New Level
The currency is presently trading for more than $20,700. That’s a surge of approximately $1,200 from 24 hours ago, and many analysts are relishing the idea that the currency has followed their predictions. Many thought $20K could be achieved before the year was over, and it looks like they were right.
The currency’s present jump is largely driven by institutional power, rather than retailers or individual traders. This is the main difference between now and what occurred roughly three years ago in 2017. During that period, the currency rose to more than $19,000 during the month of December. Many believed that the day’s of cryptocurrency volatility were gone, as it wasn’t just BTC that was doing well during this period.
Many smaller altcoins, such as Ethereum, bitcoin cash, Ripple’s XRP and Litecoin also managed to hit huge figures that have never again been replicated. For many traders, things had finally matured, and the crypto space was proving to the world that it was big and strong enough to stick around.
Unfortunately, this wasn’t quite the case, as less than 50 days later, the world’s number one digital currency by market cap had fallen well below $10,000, thereby losing more than half its value. Roughly nine months later, by November of 2018, the currency had lost about 70 percent of its value and dropped into the mid-$3,000 range. One unit of BTC was trading for roughly $3,500.
But it wasn’t just bitcoin that was biting the dust. Several of the world’s additional altcoins had also fallen into the doldrums. It took approximately five months for the crypto space to begin showing signs of repairing itself, with bitcoin finally striking the $5,000 mark again in the month of April the following year. Despite a solid summer, however, the world’s primary cryptocurrency couldn’t edge beyond the $7,000 price range once 2019 was over. Though the year went better than the previous 12 months, people still weren’t convinced that bitcoin and its digital cousins had recovered.
Many Companies Are Supporting It
This time, things seem different. The asset struck the $10,000 mark for the second time this year – the first being in February – in July, and for the most part, it has been on a steady bull run ever since. The circumstances look different this time around, as it’s not just individual retailers who are getting involved in bitcoin.
Rather, many companies and institutions now see it as a store of value that can keep their wealth stable during times of strife. Companies like MicroStrategy have invested hundreds of millions into BTC, and this type of support appears to be giving the currency the long-lasting boost it needs to stay afloat.