This is a historic moment for bitcoin, which for the first time since its inception exceeded $ 20,000. Cryptocurrency has seen its value triple over the course of the year, after its impressive crash last March. The many investments by well-known names in the financial world have enabled it to reach this peak.
It’s done, bitcoin is now worth over $ 20,000. A ceiling that is both symbolic and historical for cryptocurrency. It must be said that this has come a long way. Last March, it lost more than 30% of its value in 24 hours because of the concern about the coronavirus. “$ 20,000 is without a doubt a great achievement for bitcoin”, said Yoni Assia, CEO of the eToro investment platform. “We have observed a significant shift in the demographics of investors. It is no longer the domain of developers and specialists in finance ”.
The currency has thus tripled in value since the beginning of the year, until today reaching a peak of $ 20,398.50. In view of the investment scores over the past few months, some do not hesitate to say that this rise is not ready to stop. “We have marked a new stage, we are now determined to reach the 30,000 dollars” announced Antoni Tenchev, co-founder of Nexo, a lending company specializing in cryptocurrency. “This is the start of a new chapter for bitcoin”.
Bitcoin remains a volatile currency, but may stabilize in the future
Bitcoin is definitely no longer a niche currency. On the contrary, she now looks at big investors, such as the renowned Tudor Jones and Stanley Druckenmiller. While tech companies continue to be interested in it, it’s hard to miss out on buying $ 100 million in bitcoin from Massachusetts Mutual Life Insurance, a major US insurance fund. If all the major insurance players allocated 1% of their assets to cryptocurrency, 600 billion dollars would be injected into the market. The latter currently represents 383 billion dollars.
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Individuals are not left out. As the currency becomes more democratic, like the bitcoin payments authorized by Paypal, the latter has widened its hole among the population. To the point that banks are also starting to allow the use of cryptocurrency for purchases, through Visa or MasterCard. Of course, where some marvel at this rise in power, others show themselves more skeptical and don’t forget the character to say the least volatile bitcoin. His last record had thus been followed by a sudden fall. Nevertheless, events show that this turns out to be a placement more and more sure.
Source: Bloomberg
