The price of bitcoin touched US $ 19,920 per coin on Tuesday’s trading (1/12). Thus, the record high of US $ 20 thousand per coin in December 2017 was almost broken.
Bitcoin price is increasing due to several factors. First, the depreciation of the US dollar from other countries’ currencies in recent times.
You could say this year is the ‘year’ of bitcoin. Quoting from CNN, throughout the year bitcoin flew 175 percent of its position at the end of 2019.
Bitcoin has continued to rally since March
Since plunging to the level of US $ 4,000 per coin in March due to the pandemic, bitcoin has continued to rally in line with the weakening of the US dollar.
The increase was also supported by the increasingly widespread use of cryptocurrency. Payment companies such as Square and PayPal already allow users to buy or sell bitcoin.
Meanwhile, money management giant Fidelity launched a bitcoin fund for rich investors. Bitcoin futures contracts are even traded on the Chicago Mercantile Exchange.
In other words, bitcoin is no longer underestimated today. Now, cryptocurrency is legal as a transaction currency. The number of bitcoins currently in circulation is now valued at over US $ 365 billion.
“This rally is driven by money and smart institutions and not built solely on excessive retail speculation,” said eToro AS Managing Director Guy Hirsch, quoted Wednesday (2/12).