Bitcoin has managed to hit yet another all-time high as it surpassed 30k USD today. The flagship cryptocurrency has been witnessing great momentum in the market which has helped it report new highs over the past month in 2020. At the time of writing, it is trading at $30,809.
Unlike 2017, the 2020 all-time highs were a result of growing interest in the coin. This was due to the impact of COVID-19 making many to seek other options apart from traditional finance. Interestingly a large chunk of this interest comes from institutional investors who have found value in the digital asset.
At 30k USD hit, Bitcoin is returning nearly 315% in year-to-date which would have been hard for any investor to reject. Slowly but promptly Paypal joined the BTC wagon, Square and MicroStrategy also became big investors in BTC. According to the latest reports by Bitcoin Treasuries, almost 29 public companies have included Bitcoin in their investment portfolios. The holdings have thus hit $30 billion with MicroStrategy leading with 70,470 BTC.
With the USD seeing a tough time, Bitcoin has been a safe haven for investors, and comparing it once again to Gold, did not feel like a stretch. Although BTC hit new ATH against gold as well.
As governments kept piling more debts and central banks continue to fund borrowing through the backdoor QE, zero interest rates, and bond yield manipulation, the future of Gold and Bitcoin might look brighter. As Bitcoin’s supply is limited, its scarcity is boosting its value along with the safe haven it is providing against traditional finance.
2020 has seen many critics select Bitcoin, it will get even more difficult for skeptics to dismiss it as a bubble in 2021.
Among major altcoins, performance on the day was mixed, with Ether (ETH) staying flat below $740 despite Bitcoin’s latest rally.
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Others also faced teething problems, among them Polkadot (DOT), which fell 6.3% despite its still strong weekly performance of 60% gains.