The most popular cryptocurrency – Bitcoin surpassed its freshly recorded mark of $20,000 just a day after to register a new all time high above $23,000 on Thursday, December 17.
The previous record-high $20,398.50 was noted just a day before the new mark was hit, on Wednesday, December 16, followed by a slight decline to $20,145 with an intra-day gain of nearly 4%.
But coming to Thursday, the virtual currency soared up by 12% to record a new all-time high of $23,421, and is holding its ground around the newly gained value.
Bitcoin has increased in value by more than 200% since the beginning of the year. The digital currency, which was launched back in 2009, has seen an upsurge from as less as $4,000 as recorded in March to over $23,000 in December.
Major factors behind Bitcoin’s recent success:
Several factors are supporting this dramatic rise in bitcoin’s value. Some notable factors are:
- PayPal’s decision to allow its account holders to use the cryptocurrency
PayPal, arguably the most popular online financial service, announced on October 21 that it would allow its customers to buy, hold and sell bitcoin. It has provided a breakthrough in the evolution and acceptance of digital currencies in the global payment system. This move facilitates consumers to move money around the world without paying excessive fees imposed by banks and prevalent payment platforms set up by Mastercard and Visa card.
- Big-name investors and companies investing in the digital currency
High profile investors such as Paul Tudor Jones and Stanley Druckenmiller have moved their assets into the digital currency. Similarly, companies like Square Inc. and MicroStrategy Inc. also have invested in bitcoin. This has boosted the popularity of the cryptocurrency.
- Major Wall Street firms showing interest in cryptocurrency investment
Guggenheim Partners, a global investment and advisory firm, revealed that it might allocate as much as $530 million to Grayscale Bitcoin Trust. Likewise, the cryptocurrency is getting a significant boost from big Wall Street firms, such as S&P Global and Cboe Global Markets, entering into the cryptocurrency market data business.
The rise of various cryptocurrencies and recent development from Facebook to launch its cryptocurrency called Diem, previously known as Libra, have not gone unnoticed. Several reputable banks from the USA to China, as a reaction to this development, have already started testing their digital applications. Furthermore, banks are coming out with plans for bank-backed virtual units.
The fact that bitcoin is not governed by any central bank, has drawn the attraction of many, from those having an interest in exotic investment to those filled with criminal ideas. For the latter part, cryptocurrency is often criticised. A recently held virtual meeting of the Group of Seven (G7) officials concluded on an agreement that the cryptocurrencies needed regulating.
Bitcoin has experienced a series of dramatic rise and fall in its value since its launch. Coming to the final month of the year 2020, the value has increased drastically and is looking to sustain. And at this point, the world is watching curiously if the consistency will continue or will the volatility come into effect again.