The volatile Bitcoin today came to touch the $ 20,000, in a market that is increasingly watching the behavior of this cryptocurrency, which could exceed its all-time high.
As anticipated CryptoMarket in BAE Business, the Bitcoin Today began a race to the rise and with a goal of USD20,000. After 4 p.m. Argentina was trading at USD19,307.35, according to the index prepared by the site Paxful.
But at noon got to earn 8% and touched $ 19,740, startling the operators of this virtual market.
Launched after the 2008 global financial crisis by an anonymous software developer identified as Satoshi Nakamoto, the cryptocurrency was characterized by very marked volatility, with historical rises and collapses. However, market analysts suggest that this time the growth is « more natural ».
« The time for Bitcoin has come. This rebound could still have a long way to go, « he said. Guy hirsch, managing director for the US on the trading platform eToro, to the Bloomberg agency.
The value of cryptocurrencies
In this 2020, year of the coronavirus pandemic, cryptocurrencies managed to almost triple in value.
Bitcoin is up over 160% this year and at times it surpassed its historic maximum of USD19,666, achieved in December 2017.
Operators estimate that the increased demand for this cryptocurrency is driven by the search for riskier assets before a dollar in decline in world markets and fall in interest rates.
Why did Bitcoin go up
The strong interest in Bitcoin accelerated in the last weekss when, after reaching US $ 12,500 on October 21, it climbed 57% in just over a month.
One of the reasons for its expansion is explained by the coronavirus crisis, which brought with it a policy of strong monetary issuance in the United States and the European Union, as well as a sharp drop in interest rates.
Both factors seem to have worked as fuel for bitcoin, an asset that although it is not tied to any other, has a reduced amount of « coins » in circulation, which works as an attractive for portfolio diversification given the low yields of options considered safe.
Some experts warn, however, that cryptocurrencies they are not for any investor, since they suffer great volatility and operate in less transparent markets than traditional assets.
Even versions that the new Democratic administration of Joe biden in the U.S could apply regulations on this market, caused some surprises on the price in recent weeks.
For the Bitcoin advocates This is a different time than when the cryptocurrency peaked at USD19,511 in December 2017 amid widespread euphoria, which led to her finally lose 70% over the next year.
Despite this, last week the cryptocurrency was USD7 from its maximum earlier, but it lost USD3,000 in a two-day period, which it subsequently recovered.
Either way, traditional mutual funds are trying to capitalize on increasing institutional demand, such as Fidelity Investments, which launched a Bitcoin fund earlier this year.
“Institutional investors can already get exposure to cryptocurrencies using regulated markets or instruments they are comfortable with. Most of these did not exist in 2017, ”said Henri Arslanian, PwC’s global crypto leader.