Bitcoin also referred to as the king of all cryptocurrency has hit a new all-time high trading at over $23,000 as of press time.
The world’s most popular digital currency surpassed its previous all-time high of $19,783 achieved in 2017. Bitcoin rose as high as $23,200 according to Coingecko and has risen by over 10.9% in about 24 hours.
Bitcoin adoption, as well as value, has immensely increased in 2020 and experts have given various reasons for the growth, mainly noting that the recent rise looks sustainable.
Additionally, following in Bitcoin steps other digital currencies such as Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), Chainlink (LINK) and XRP have also recorded significant increase.
ETH rose by 7% and is trading for $663 per unit at the time of publication. While, LTC, BCH, LINK, among others have recorded meaningful increase.
Notably, there are over 18.5 million Bitcoins in circulation as of publication time and the top digital asset now has a market capitalization of over $428 billion.
Reasons for Bitcoin and Altcoins rally
The crypto space has welcomed the recent bullish run Bitcoin and several other altcoins have recorded. And have pointed to some unique factors responsible for the crypto rise.
The pandemic which brought economic activities across the globe to a standstill has been highlighted as one of the major factor for the recent growth.
According to reports, the lockdown which prevented major businesses from functioning, invariably leading to organisations packing up and many people to lose jobs. Caused government to dish out monetary stimulus, requiring them to print trillions of dollars.
This has led many to seek new areas to invest in due to belief that traditional fiat currencies will lose their purchasing power as a result of COVID and government response to the pandemic.
Also, experts have attributed Bitcoin’s recent bullish run to the massive adoption of the top crypto by federal government, international financial institutions, multinational organizations and influential individuals
Payment giant PayPal recently announced its plans to offer digital currency, noting that its users would be able to buy, sell, and hold four prominent cryptocurrencies at the initial stage.
Similarly, Insurance giant Massachusetts Mutual recently announced it invested $100 million in Bitcoin for its general investment account. While Software company MicroStrategy has invested over of $475 million in Bitcoin.
Reaction to Bitcoin rise
The crypto community in general have expressed excitement about the crypto price rises. Tyler Winklevoss co-founder of Winklevoss Capital Management and Gemini cryptocurrency exchange, took to his Twitter account to note that Bitcoin price would continue to rise. “Btw, #Bitcoin is just getting started,” he tweeted.
Changpeng Zhao founder and CEO of Binance also expressed his excitement with the current crypto price rise noting the top crypto was worth the investment.
“3 years ago today, #bitcoin made its ATH of $19,700 and @Binance became the world’s largest exchange by 24hr trading volume at $11 billion at the same time. #bitcoin “crashed” and “died” many times since. Today, we are still here, with slightly higher numbers,” he said.
Bitfinex CTO Paolo Ardoino also openly expressed support for the top crypto stating “Bitcoin’s ascent above US$20,000 is yet another milestone in what has been an epic year for crypto.”
However, Micheal Saylor a popular crypto critic who likes to trash Bitcoin was also quick to share his opinion via his official Twitter handle. “#Bitcoin is a bank in cyberspace, run by incorruptible software, offering a global, affordable, simple, & secure savings account to billions of people that don’t have the option or desire to run their own hedge fund,” he tweeted.