The bitcoin value has surged more than $22,000 to reach an all-time high. The world’s biggest cryptocurrency is now at more than $22,700 on Thursday, 17 Dec.
Bitcoin Surges To New Highs
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$22,000 is just the green signal for further upmove for Bitcoin. There is high volatility at this level, and experts say that it would soon reach $25,000, the next psychological level. Now that the cryptocurrency crossed the $20,000 mark, it is growing in value, showing rapid movement. Profit-taking is not on the horizon as yet, say experts. It is heading north and will reach further high levels, which is creating more investor interest.
Bitcoin surged by more than 6%, with big investment companies showing more interest in the crypto for its quick gains. it may surge to $100,000 in 2021, tell crypto investors.
Bitcoin Gaining Popularity
Bitcoin has gained 190% in 2020 after it surged to new highs on Thursday. Demand pouring in from payment companies like PayPal and Square have helped the crypto gain momentum. In 2019, it gained 90%, and it is just a sign of what to expect in 2021. Investors believe that the ongoing rally will continue as the crypto market captures the attention of more investors, through increased exposure. With various stimulus measures from global central banks and Covid vaccines introduced, advanced countries are faced with higher inflation rates.
In December 2017, bitcoin came close to $20,000 but reversed and crashed to $7,000 in February 2018. The crypto price bubble was expected in 2018, and it kept investors and regulators wary of the sudden rise and crash in the Bitcoin value. It rose by almost 900% in this period.
The volatile crypto, which is usually a speculative asset, has no storage value like gold and currencies. The investment community believes that the cryptocurrency had delivered well in 2020 and would continue to do so in 2021. The cryptocurrency attracts more investors as rising inflation threatens the economy.
Bitcoin Market Capitalization
Bitcoin’s market capitalization has come up from scratch to more than $350 billion. The best-known cryptocurrency has surged high over the past 12 years, say experts. It had no value in 2011, at its debut, but surged to a value of more than $22,000 in 2020. In the years to come, it may see a huge rally, almost five times its value say crypto experts, money managers, and hedge fund managers.
In December 2020, the market cap of Bitcoin has surged more than 100 billion US dollars, much higher than the previous months. As the cryptocurrency is decentralized and does not have a single institution to control the network, it does not hold a favorable position as the traditional currency. But it is unique because it is easily set up and is transparent.
Bitcoin has limited supply and can be transferred easily across borders, which are some factors that push the cryptocurrency to higher levels.
Cryptocurrency is expected to receive good developments in the years to come. Trading will improve as people adapt to the crypto assets. Even during this pandemic time, the price of bitcoin has surged to new all-time highs, with investors showing greater interest.
Payment Companies PayPal and Square
Multinational payment companies are piling their enormous capital into the crypto, keeping the large cryptocurrency swelling in value and consumer interest. Traditional investment managers are also showing interest in crypto and bitcoin in particular. With the payment companies opening to cryptocurrency users, the crypto market is now entering the mainstream payment method, with better market infrastructure.
PayPal announced in October that users can buy into bitcoin and other cryptocurrencies, and the value of Bitcoin surged high, along with shares of PayPal. PayPal’s payment using crypto has encouraged millions of users, showing them a new way to buy the crypto.
Square’s bitcoin offering has set the base for rapid expansion for the crypto. Square’s Cash App added a bitcoin buying feature, which was favorable for Bitcoin users.
Institutional interest is growing in the cryptocurrency. Big investors like Paul Tudor Jones and Stan Druckenmiller have made open statements about their interest in the crypto, and have included bitcoin in their portfolio.
Ethereum, the second-largest cryptocurrency after Bitcoin, has gained 300% in 2020. Loans and insurance, which were traditional financial instruments, now use crypto technology with DeFi projects. Ethereum moves in the same direction as bitcoin and has surged more than 1.75% higher. Ethereum surged higher to $650, much higher than its value in May 2018. Ripple’s XRP has also surged higher, up by more than 29% within the last 24 hours.