After Bitcoin’s impressive run toward breaching $20,000, the leading cryptocurrency did not retrace as expected. Instead, it pierced through one resistance after another until eventually hitting $28,320. At that price point, Bitcoin’s market cap stood at $500 billion. Once Bitcoin broke above the psychological resistance at $20,000, it took one day to claim $22,000 and then two more days to break past $23,000. The largest cryptocurrency by market cap stayed within the $23,000 to $24,000 range for five days, as reported by International Business Times.
Bitcoin price has more than tripled in 2020.
Bitcoin’s price more has than tripled this year amid a worsening global pandemic. Believers see it as a hedge against dollar weakness and the risk of faster inflation amid huge stimulus injections and cite growing interest from institutional buyers. However, crypto cynics are questioning Bitcoin’s validity as an investment and point to the crypto currency’s history of wild rallies followed by crashes. Regulatory scrutiny of the still-nascent cryptocurrency industry continues to be a variable for investors to consider. Many large institutions worldwide are now increasingly investing in bitcoin.
Bitcoin continues to hover around $27,000.
At the time of writing, the leading cryptocurrency bitcoin’s price is trading at just above the $27,000 mark. Several factors played a role in boosting the price of bitcoin to new all-time highs. There has been an increasing interest in bitcoin from institutional investors worldwide. MicroStrategy purchased an additional 29,646 bitcoins for approximately $650.0 million in cash this month alone. It is one of the largest independent publicly-traded business intelligence companies. The CEO of Nasdaq-listed MicroStrategy, Michael Saylor, tweeted that the flow of money from real-world conventional assets into Bitcoin is neither a bubble nor a rally but a chain reaction.