The number one cryptocurrency by market value jumped over the key psychological threshold during the early U.S. trading hours, surpassing the previous peak price of $19,920 recorded on Dec. 1. At the current price of $20,374, bitcoin is up 5.4% over 24 hours, according to CoinDesk’s Bitcoin Price Index (BPI).
Bitcoin’s value has doubled in the past three months and the institutional-led rally looks sustainable. Meanwhile, other prominent cryptocurrencies such as Ethereum, litecoin, and XRP are still down 58% to 88% from their respective lifetime highs reached three years ago.
Breaking above $20,000, which represented a significant hurdle in the mindset of most traders, is entirely new ground for bitcoin and opens the doors for a climb to $100,000 over the course of 2021, according to some.
That rise would bode well for other crypto sectors as well, including decentralized finance (DeFi), according to DversiFi’s CEO Ross Middleton.
Bitcoin breached the $20,000 level for the first time in history Wednesday, as crypto enthusiasts pointed to increased demand from institutional investors for the red-hot digital currency.
The world’s most-valuable virtual currency traded 5.6% higher to a price of around $20,600, according to market data from Coin Metrics, taking its year-to-date gains to more than 180%.
Bitcoin has been on a tear this year. Analysts say it’s gotten a boost from big-name investors such as Paul Tudor Jones and Stanley Druckenmiller moving their own assets into the cryptocurrency, while tech firms such as Square and MicroStrategy have used their own balance sheets to buy bitcoin.
Bitcoin Long (Buy)
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