Bitcoin is getting shining. The cryptocurrency (bitcoin) price has now reached $ 17,000 or the highest in nearly three years.
According to data from industry website CoinDesk, bitcoin price rose. It is more than 4% in the last 24 hours of trading on Tuesday (17/11/2020). It even reached $ 17,030, the highest since January 7, 2018.
Launching CNBC International, sources in this industry said that bitcoin has increased 137% this year. This is due to a number of factors. Including government stimulus related to Covid-19 and the interest of a number of well-known investors. Such as Paul Tudor Jones and Stanley Druckenmiller.
“The gap between the crypto world and traditional financial institutions has closed dramatically,” said Charles Hayter, CEO of CryptoCompare quoted Wednesday (11/18/2020).
“As a result, incumbent players are now able to play in the digital asset market. The narrative that drives them to do so is the alignment of Covid, monetary policy and global political turmoil.”
Going mainstream
Last month, PayPal announced that its customers will be able to buy and sell Bitcoin and cryptocurrencies using their PayPal accounts, allowing customers to buy things from the 26 million sellers which accept PayPal, it said.
PayPal plans to roll out buying options in the US over the next few weeks, with the full rollout due early next year.
But Oanda’s Mr Moya warned traders to prepare for more volatility.
“The amount of hedge funds and high-frequency trading systems driving Bitcoin higher will likely deliver exaggerated moves once its price nears the $20,000 level,” he added. “Traders need to expect $1,000 swings in a matter of minutes.”
Some believe the recent rise in Bitcoin is partly driven by the “fear of missing out” (FOMO).
“Its rebound is creating more interest from speculators and so they are jumping in which then pushes it even higher,” added Mr Oliver.
“I think most people would put more faith in a digital currency run by their government rather than one like Bitcoin that they have trouble understanding or explaining.”
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