The world’s most well-known cryptocurrency traded at a fresh record high above $20,000 on Wednesday. The new high took bitcoin’s market cap to $384 billion.
Bitcoin prices BTCUSD, +3.75% were trading at $20,809 in line with CoinDesk data, up nearly 7.3% on the session. The gains for the digital asset paired together by a flood of institutional investor attention on cryptos like bitcoin and other virtual currencies.
The majority of cryptocurrency exchange sites say this can be the primary time bitcoin has ever hit $20,000. However, CoinMarketCap lists the 2017 high at $20,089, and crypto exchange BitMEX has it at $20,093. The explanation for the variation is that unlike stocks, which have listings on one exchange at one price. Therefore, cryptocurrencies are bought and traded on many various exchanges and also the exchanges can vary within the price they list; many of them provide a blended average of market prices from multiple exchanges. But all exchanges agree that Wednesday marks a replacement all-time high.
Institutional interest has driven the crypto to surge, as Wall Street firms have begun to allocate a tiny amount of their portfolio to bitcoin. Some of the influential investors have done identical and spoken publicly about it, including Paul Tudor Jones and Stan Druckenmiller.
Wall Street institutions had interests in bitcoin before the pandemic. Therefore, crypto executives say the economic trends of the pandemic have boosted bitcoin’s appeal further.
In fact, unregulated by any financial organization, bitcoin emerged as an inviting option for investors with an appetite for the exotic. Unfortunately, criminals have also seen its under-the-radar appeal.
After the unit surpassed US$1,000 for the primary time in 2013, it increasingly began to draw in the eye of monetary institutions and has experienced wild price swings.