We have it! Bitcoin has just beaten its 2017 ATH and is already setting new milestones. The oldest cryptocurrency broke the psychological barrier of $ 30,000, while breaking a new record of $ 31,925
New Bitcoin ATH: $ 31,925
Bitcoin has just reached another milestone. On Saturday, January 2, 2020, the price of the oldest cryptocurrency broke the USD 30,000 barrier for the first time, establishing the new ATH.
At the time of writing, BTC is priced at $ 31,700, an increase of almost 8% in the last 24 hours. ATH also recorded the market capitalization of Bitcoin. The current market cap is over $ 589 billion. By comparison, the capitalization of Ethereum – the second largest cryptocurrency – is just $ 86 billion.
Why is the BTC price rising?
While Bitcoin continues to establish new ATHs every day, it is important to know what is causing this to happen. The last huge rally was undoubtedly influenced by several different factors.
First, in May 2020, Bitcoin went through a third halving. Thus, the supply of the oldest cryptocurrency has decreased by half. Historically, after each halving, Bitcoin’s price and other related metrics, including hash rate, number of buyers, and growth rate, experienced a sharp jump. Looking at the current price of Bitcoin, it seems that history has come full circle. The May halving certainly contributed to the recent gains.
The second very important factor is the growing interest in Bitcoin among institutional investors. 2020, although it is a year of global troubles, was certainly one of the breakthrough years for BTC. Bitcoin has not only emerged unscathed from the coronavirus pandemic, but is also creating new ATH overnight. This proves the growing trust it enjoys in the eyes of institutional investors.
This year there was a boom in BTC among institutions. Many companies have started to invest their reserve funds in cryptocurrencies. It all started with MicroStrategy, but Michael Saylor’s company was followed by giants such as Square, Guggenheim Partners, and Ruffer Investments. PayPal, which introduced crypto services for its clients in the USA, certainly made its contribution.