After experiencing a drop in value earlier this year, Bitcoin reached a record 2020 high with a market capitalisation of $18,480 on Wednesday.
The surge marked the largest cryptocurrency topping the $18,000 mark for the first time since December 2017.
Bitcoin saw a surge of 4.8% on Wednesday, leading to its $18,480 valuation. This left the cryptocurrency around 10% shy of its intraday peak value of $19,511, as per data compiled by Bloomberg
The impressive valuation in the past few days marks a 360% increase in Bitcoin’s value since its lowest numbers of $4,900 in March this year. As for the year round performance, Bitcoin has registered a 150% surge since January 2020, reports Reuters.
The bull run of the cryptocurrency in 2020 has now stretched to 112 days, making it the first time in its history. The reasons behind this bull run are believed to be Bitcoin’s now wider acceptance as well as consistent performance in the market.
CoinDCX, an Indian cryptocurrency exchange platform, highlights how Bitcoin was able to maintain its value during Covid-19, as other asset classes displayed an inconsistent behaviour. Since cryptocurrency is not dependent on factors like geographies, demographics, markets and economies, it was practically unaffected by the Covid-19 induced lockdowns across the globe.
Another reason for its bullish performance is the recent adoption of cryptocurrencies by major technology companies. Paypal, for instance, opened service to cryptocurrencies last month, leading to yet another surge in Bitcoin’s value within this bull run.
With its accomplishment as a stable asset in the ongoing times, investors are now considering Bitcoin to be the new gold which can be used as a protection against inflation. As the acceptance of cryptocurrencies increases, the comparison is only going to be lopsided.
A similar rise in Bitcoin value was seen in December 2017, when the cryptocurrency experienced a buying frenzy driven by retail investors. It had hit a record value of $19,511, just shy of $20,000, at the time.