Bitcoin Soared To Set High Records Against The Dollar As Its 2020 Rally Steamed
As 2020 rallies steamed ahead in the World of Cryptocurrency, the demand boosted from both institutional and retail investors.
In the world of Cryptocurrency, Bitcoin soared to record high against the dollar on Monday as 2020 rally steamed ahead. The demand for Bitcoin boosted from both institutional and retail investors that saw the virtual currency as safe haven and a hedge against inflation. Breaking its prior records set nearly three years ago, the digital unit touched an all-time peak of $19, 864.15. It was last up 6.1% at $19, 306.35.
Last Friday, Bitcoin dropped more than 8% below $17,000 before it rebounded on Monday. This year, Bitcoin has overall gained more than 170% and fuelled demand for riskers assets amid unprecedented fiscal and monetary stimulus, hunger for assets perceived as resistant to inflation, and expectations that cryptocurrencies would win mainstream acceptance.
As reported by a business website, Sergey Nazarov, the co-founder of Chainlink, a decentralised network that provides data to smart contracts on the blockchain said that Bitcoin is a natural safe haven for those seeking shelter from rapidly increasing central bank money printing and the inflation that everyone agrees is already increasing. Ethereum and XRP, which are smaller coins that often move in tandem with bitcoin, gained 5.6% and 6,6% respectively.
Christopher Bendiksen, the head of research at CoinShares cited continued corporate and institutional interest as well as post-Thanksgiving retail demand for Bitcoin’s new surge. He said,” While circumstantial, price action really started picking up speed when the U.S. woke up this morning, which could reflect buying pressure from retail-oriented platforms such as Square’s CashApp, Robinhood and PayPal.”
Bitcoin’s 12-year history has been peppered with steep gains and sharp drops. As compared to the traditional assets, its market is highly opaque. According to analysts, the Bitcoin market has evolved since 2017. Now, it has boasted functioning derivatives market and custody service by major financial firms. The shifts have made it easier for professional investors from hedge funds to family offices to seek exposure to cryptocurrency. As a result, markets are in general more liquid and less volatile.
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