Bitcoin Price hits $23K for the First Time in History
Bitcoin price has just hit $23,000 for the first time ever as investor popularity continues to surge for the world’s most highly-demanded cryptocurrency.
The price of Bitcoin has surged past the $23,000 barrier for the first time in its history, according to the CoinMarketCap website. The historic milestone comes just over two weeks after breaking its previous all-time high.
Bitcoin has gained more than 170% this year, pushed by demand from institutional investors attracted to its potential for quick gains and purported resistance to rising USD inflation.
Is this rally similar to the one that we observed in 2017? Definitely not, as there are other factors that influence the current Bitcoin market. This time, among these factors we can highlight the increasing demand from teh side of institutional investors, the growing adoption of the coin as well as the appearance of understanding that Bitcoin can function as a reliable store of value.
Institutional investors do not perceive Bitcoin as an asset for short-term strategies. They view BTC as an alternative to gold and a new store of value.
This new rally has been attributed to renewed buying activity around Bitcoin as well as other economic news emanating from the United States. There are potential talks that the long-awaited Coronavirus stimulus deal in the U.S will be reached within the next 24 hours according to Politico’s Jake Sherman.
The very first stimulus checks that were issued in the second and third quarter of this year saw many Americans investing theirs into buying Bitcoin (BTC).
While the mass buying action of the institutional investors has a more emphatic influence on the price of Bitcoin, the almost negligible role of retail investors using their stimulus packages to purchase BTC may also contribute to the attempt for the coin to hit its ambitious all-time high price before the end of the year.