- Bitcoin rose more than $ 18,000 on Wednesday, to a three-year high, and its market capitalization reached an all-time high of $ 336 billion.
- The price closed more than $ 17,000 in just five days in history, say analysts at Deutsche Bank.
- The rage over its price caught the attention of Hollywood celebrity Macy Williams, who on Tuesday conducted a poll on Twitter about whether to buy bitcoin.
- Events leading to the rise in Bitcoin prices include an improvement in the reception of the mass consumer and newly elected President Joe Biden, who is appointing crypto-friendly Gary Gensler to oversee Wall Street regulations, an OANDA analyst said.
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Bitcoin exploded more than $ 1
The price of the digital token jumped 2.5% to $ 18,147 around 6:15 a.m. ET, and its price has risen about 154% so far. Bitcoin recorded its highest price so far in December 2017, reaching $ 19,783.
The market capitalization of the digital asset reached a new high of $ 336 billion, overshadowing its previous record of $ 328 billion, set at the end of 2017, according to Coin Gecko.
According to Deutsche Bank analysts, bitcoin closed more than $ 17,000 in just five days in history.
The latest currency jump began in October, after PayPal announced it would allow its users to buy, sell and hold the token. Crypto bulls said it was only a matter of time before other large companies adopted its use. The rage even led Game of Thrones star Macy Williams to take a Twitter poll recently to see if she should buy bitcoin.
Billionaire investor Mike Novogratz responded, saying he expects its price to reach $ 20,000 first, before reaching $ 65,000, due to a “network effect” that has many new buyers and low supply. “So YES, buy it,” he said.
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But some believe it could be just a bubble and its price could plummet at some point.
“It’s certainly a matter of time before a new peak is reached,” said Craig Earlam, senior market analyst at OANDA Europe. “Although there’s something in the huge profits from the last month that makes me a little nervous given the past experience.”
The price of bitcoin has risen by more than a third so far in November. Since the beginning of October, he has won about 70%.
Many analysts, including Erlam, expect the price to reach $ 20,000, with some expecting even higher levels.
Bitcoin is now “ready to test its all-time record and eventually move more than $ 20,000,” said Ian Balina, chief executive of AI-run cryptocurrency company Token Metrics. “This is within the reach of BTC, as the global economic climate is ideal for bitcoin to launch to new heights.”
According to Bitcoin, everything is going well, according to Edward Moya, another senior analyst at OANDA. This is largely because basic acceptance is improving, with President-elect Biden appointing Gary Gensler, someone who is considered cryptocurrency-friendly, to oversee Wall Street rules and have a strong institutional interest, he said.
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