Bitcoin surpassed $20k for the first time in 12 years since issued for the first time. Some observers say that Bitcoin prices will continue to rise as financial institutions are incorporated as part of their investment assets one after another. Some predicted that it could jump 20 times compared to the current price.
According to CoinHills bitcoin rose about 10% from the previous day to 21,800 dollars as of 2 p.m. on the 17th. The price of Bitcoin exceeded $20,000 from 11 p.m. the previous day.
Bitcoin rose to $19,920 on the 1st of this month, surpassing the previous record of $19,666 in December 2017. Bitcoin has been falling for some time since early 2018, but it has been rebounding as it is seen as an alternative asset after COVID-19 this year. The current price is almost three times that of the beginning of the year.
The first time in Bitcoin history, $20k
Some observers say that Bitcoin’s price may fall again as it did in early 2018. But recently, price volatility has decreased due to a series of participation by financial institutions. For this reason, some believe that Bitcoin can function as a hedge as the U.S. dollar is showing a weak trend.
Individual investors are also jumping back into cryptocurrency investments. This is because an environment has exist where people can easily purchase bitcoin through financial platforms such as Paypal.
Some analysts say that Bitcoin has emerged as an alternative asset while gold, a representative safety asset, is struggling due to the recent growing preference for risky assets.
In addition to Bitcoin, Etherium, the second-largest cryptocurrency, is gradually incorporating into the system. According to the Wall Street Journal (WSJ), the Chicago Mercantile Exchange (CME) Group announced on the 16th that it plans to release the Etherium gift product in February next year. This is the second cryptocurrency futures trading after Bitcoin. It is predicted that price volatility, which has been pointed out as an essential problem of cryptocurrency, will decrease further. Because the number of cryptocurrency transactions in the system increases due to futures trading.