Bitcoin price has risen above the $20,000 mark for the first time ever. The world’s most-valuable cryptocurrency went as high as $20,600, according to Coin Metrics.
This new milestone comes just 5 months after it crossed the $10,000 mark. With its new price, Bitcoin has now seen year-to-date gains of more than 180%.
According to crypto enthusiasts, the increased demand for Bitcoin from institutional investors is the main driving force behind the price increase.
Bitcoin on Rockets
At the beginning of the year, Bitcoin was trading close to $10,000 but the pandemic struck and its number dropped to as low as $5,678 for some weeks in March.
Since then, the price has risen steadily to break records and hit major milestones. First, it hit the $10,000 benchmark in July and has now double the number by crossing the $20,000 mark.
The only time the coin has been close to the $20,000 benchmark was in 2017 during the monster rally.
In 2017, Bitcoin had a sharp fall back to about $3,000 after rallying close to $20,000. Analysts have, however, predicted that the same won’t happen this year. PlanB expects BTC to hit the $100,000 mark by the end of 2021.
“Somewhere between and year and a year-and-a-half after the [May 2020] halving, so say before Christmas 2021, bitcoin should be, or should have been above $100,000,”
PlanB told Global Macro Investor founder Raoul Pal.
In Summary
With big techs like PayPal, Microsoft and AT&T already accepting bitcoin, the solidity and popularity of the world’s most popular coin are firmer than ever.
Like analysts have predicted, confidence in bitcoin is at an all-time high and it could further push the price of Bitcoin to break even more records.
Technext Newsletter
Get the best of Africa’s daily tech to your inbox – first thing every morning.
Join the community now!