Bitcoin has achieved a new all-time high above $19,783 just shy of three years after the historic 2017 bull market.
The world’s largest cryptocurrency has been the recipient of significant institutional investment in 2020, with the likes of MicroStrategy and Square investing $475 million and $50 million respectively.
This has caused a notable uptick in retail interest of the entire asset class, with Google searches for “Bitcoin” and “cryptocurrency” trebling since August.
Volatility is expected if price continues to drive above $20,000, although attention will switch to altcoins once Bitcoin begins to consolidate.
In 2017, BTC rose to a meteoric high of $20,000 in December before tumbling back down to $11,150 just six days later.
BTCUSD chart by TradingView
The rally came as a result of the ICO boom that saw start-ups achieve valuations in the billions as investors rushed to find the “next Ethereum” or “next Bitcoin”.
This was clearly an unsustainable model that eventually collapsed in the following year, but this time around feels different with Bitcoin having matured significantly over the past three years.
A fresh wave of optimism from institutional players, coupled with the BTC halving earlier this year, has constructed a narrative that makes it hard for anyone to dispel Bitcoin’s potential.
Bitcoin’s foray into the unchartered territory above $20,000 may be short lived as traders take profits from its barnstorming run, but it’s hard to deny the sheer strength Bitcoin has on all macro scales.
For more news, guides and cryptocurrency analysis, click here.
