The new 2021 begins with a bang for Bitcoin. As the cryptocurrency flickered ever so closely to the $33k mark the last couple of weeks of 2020, it eventually broke its record by an impressive 14.73% as it reached an astounding price of $34 168 for a single Bitcoin in 2021! The increase came this Sunday morning.
Bitcoin ended one of the most controversial years in recent history with a 305 percent growth. Its price saw 50% increase in just the last two weeks of 2020.
On everyone’s mind are the reasons for this sudden surge in the price of the king of all cryptocurrencies. In 2017 we saw an unpredictable spike to $20k per Bitcoin, but then what followed was an unprecedented crash, and a long period of uncertainty followed.
One of the main reasons for Bitcoin’s surge is simply that it has gathered institutional interest over the last year or so. For instance, Guggenheim Partners’ $500 million investment in the Grayscale Bitcoin Fund was a huge deal, but not the only such move in 2020. The digital asset has had an increase in demand due to its inflation-hedging qualities.
Furthermore, last year many payment services saw cryptocurrencies as the next big thing, as evidenced by investor confidence and Bitcoin credibility spikes. In return, some major payment service providers saw a lucrative opportunity in adding digital assets as a payment method.
The COVID-19 epidemic brought about a rollercoaster of a 2020 for investors and traders alike. Many assets saw record volatile perturbations, including US crude oil, Gold, and of course, Bitcoin.
The mainstream success of Bitcoin is in its early stages. Who knows what 2021 holds for this digital assets phenomenon?