After testing investor patience for three weeks, Bitcoin surged past US$20,000 to reach fresh all-time highs. It is currently trading above US$21,000, as of the time of writing.
The number one cryptocurrency by market cap jumped over the key psychological threshold during the early U.S. trading hours. The price surpasses the previous peak price of US$19,920 recorded on 1 Dec, CoinDesk reported. Bitcoin’s year-to-date gain reaches over 180%.
At the current price of US$21,878 (17 Dec 11:10am, HKT), Bitcoin is up 12.5% over 24 hours, according to CoinGecko. The price of Bitcoin has surged for more than 400% this year from a low point of around US$3,800 in March, thanks to the phenomenon of more institutional investors buying into the cryptocurrency.
As institutions and corporations such as MicroStrategy, Square, and PayPal jump in, the institutional-led rally has been fueled with the growing investor interest towards Bitcoin as a potential way to safeguard against rising inflation and economic downturn.
Arrival of Institutional Money
On Wednesday, UK-based investment management firm Ruffer confirmed it made a bet on Bitcoin that is now worth around US$744.26 million, equivalent to 2.7% of the firm’s asset under management.
US-based hedge fund One River has recently emerged as one of the largest investors in Bitcoin, after quietly buying more than US$600 million in cryptocurrencies.
Meanwhile, other prominent cryptocurrencies such as Ether (ETH), Litecoin (LTC), and XRP, have also experienced double-digit growth over 24 hours.
In particular, an announcement by CME Group that CME will list Ethereum futures starting in February, 2021. The news has fostered the excitement in the crypto community. This is reminiscent of CME’s introduction of Bitcoin futures trading coincided with the 2017 bull run.
Bitcoin investors are feeling increasingly bullish going into 2021, with many predicting the price will continue to climb. But as always, the fact that Bitcoin has been going up doesn’t mean that it’ll go up in the future.
Let’s see how the market evolves in the coming months.