Bitcoin above $ 20,000! This time, large funds and even CEOs of publicly traded companies are fueling the Bitcoin rally in 2020.
The value of a Bitcoin exceeded $ 20,000 on Wednesday, after a two-month hike that saw the cryptocurrency’s value double, marking the first – some say the second – time in history when it hit the all-time high.
Bitcoin is traded on different exchanges, which creates confusion whether this is the first or the second time that it has reached $ 20,000. However, for the avoidance of doubt, Bitcoin not only reached $ 20,000, it rose further, reaching $ 20,800 on the Bitstamp excchange.
“The fundamentals are the same as in 2017, but the opportunities to make Bitcoin more expressive are much greater than the last big run that reached $ 20,000,” said Matt Luongo, CEO of Thesis.
The first time that BTC reached its peak near 20k was in December 2017, when the cryptocurrency reached $ 20,000 on some exchanges (mostly the value did not reach that). In the following months, Bitcoin had violent swings, with the value dropping to $ 5,500. Janet Yellen, who was chairman of the Federal Reserve at the time and is now the choice of President-elect Joe Biden for Treasury secretary – then warned that cryptocurrency was a “highly speculative asset” and not a “stable value reserve”.
This time, experts say that a better understanding of the Bitcoin market, a more conventional adoption and a desire to use cryptocurrency as a protection against inflation make this bull different from the 2017 bubble.
“The Bitcoin narrative about the scarcity of digital gold is growing, especially with the uncertainty surrounding the stimulus environment,” said Rob Paone, who runs the YouTube channel “Crypto Bobby” and is the founder of Proof of Talent, a company blockchain recruiting.
“Bitcoin and other cryptocurrencies are becoming a must-have for some of the traditional players,” said Paone. “Square was successful in adding it [ao seu aplicativo] and other companies took note and added it to their platform, mainly PayPal and Robinhood. It’s at stake – and many companies are looking at it as if they were missing out if they didn’t add it to their product portfolio. “
“Bitcoin is now a gamble on the table: companies are looking at it as if they were losing if they didn’t add it to their portfolio.”
Although conventional financial platforms have helped to popularize some volume of retail trade, Luongo said the market is also seeing “significant and highly convincing moves by large funds and even CEOs of publicly traded companies”, which makes this high different from the previous one, from 2017.
Text adapted from: NBC News