Bitcoin set a new intraday record on Monday, reaching a high of $19,786.24 following a wave of investors looking to cash in on the cryptocurrency’s lucrative profitability. Previously, the intraday record for BTC was $19,783.21, set in 2018.
While significant segments of the market have been dampened by the COVID-19 pandemic, BTC has managed to triple in value throughout 2020. Since September the currency has been up 97%. Trading volumes have also increased, reaching nearly $50 billion a day compared to $18 billion in September.
As the Wall Street Journal note, BTC’s rise occurred alongside a wider market resurgence following trillions of dollars of stimulus being pumped into the global economy to address the impact of the COVID-19 pandemic. While traditional investment options such as bonds offer small returns, big investors have pivoted to BTC as a high-risk, high-reward investment.
“You have the weakened dollar, [the] enormous growth of central bank balance sheets and questions about whether it will or won’t cause inflation,” said Société Générale forex strategist Kit Juckes. “It’s another beneficiary of the collapse in real yields.”
A major influence on Bitcoin’s rise this year is the decision of Paypal and Square to add BTC to their respective platforms. The online payment processing companies gave the cryptocurrency an unprecedented level of legitimization.
Major investment banks also began honing in on BTC’s transformational nature. For instance, a recent report by Deutsche Bank indicated that a growing number of investors are seeing Bitcoin as an effective hedge against inflation.
In all, 2020 has been a year of victory for Bitcoin. From rising prices to increasing legitimacy, the cryptocurrency appears to be on the path of becoming a global currency capable of rivaling gold. For Bitcoin investors and market analysts alike, 2021 is sure to be an interesting and potentially huge year.
Have a story you want USA Herald to cover? Submit a tip here and if we think it’s newsworthy, we’ll follow up on it.
Want to contribute a story? We also accept article submissions – check out our writer’s guidelines here.