Bitcoin Is Always High High, Shooting Above $ 22,000

Bitcoin has always reached a new peak. Just 24 hours after shooting beyond the $ 20,000 mark, the world’s number one digital currency by market cap has increased to $ 22,700, about $ 2,000 higher than where it stood 24 hours according to.

Bitcoin is Growing Like Never Before

The currency has been on a severe surge in recent weeks. Given that the asset, at one point in mid-March, was held below $ 4,000 for a short period, the currency has added close to $ 20,000 to its price in just nine months short. With the exception of a somewhat bearish September, which is typical for bitcoin, the currency has been on a high streak since the beginning of the year.

Coin Metrics says that the currency has added more than ten percent to its overall price within the last day, and that bitcoin is up about 200 percent since the start of the year.

Many analysts are now discussing what could be behind the sudden surge. Eric Demuth – CEO and co-founder of the crypto trading app Bit Panda – notes that this rally is largely driven by institutional investors, the main difference between now and the three-year bull run back in 2017. That run was mostly powered by retailers.

He also says that many players see bitcoin as a potential hedging tool against inflation. They have seen traditional currencies fall repeatedly throughout the year and are likely to believe that bitcoin makes a solid alternative to items like gold, which is typically seen as the ultimate wealth store. He says:

This run is completely different from the one in 2017. Back then, the price was driven primarily by retail investors. Now, we also have billionaires lauding bitcoin funds and investing securing significant jobs worth hundreds of millions. The big players who were once a long way from bitcoin and who were outspoken critics are now joining the run.

Michael Sonnenshein – managing director of Grayscale, digital currency manager – notes in a recent interview that the company’s crypto holdings increased by about six times what they were in 2019. He says:

Our flows are now probably up six times what they were last year, and the types of investors who put capital to work are unlike any of the investors we’ve ever seen before . Here are some of the world’s largest investors.

At the beginning of December, the total assets that Grayscale manages equals approximately $ 10.8 billion.

Don’t get too upset again

Despite bitcoin’s solid run, many are warning their followers that it may not necessarily be the time to get involved. Jay Smith, for example – a crypto bull and investor with e-Toro – has issued a warning to retailers who may be new to the crypto game, claiming:

It’s a grip for the time being. We are entering new territory, and it feels like bitcoin is finally being accepted as a new asset class, but there is still a long way to go.

Tags: bitcoin, Grayscale, Michael Sonnenshein