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Bitcoin (BTC) traded over $ 17,000 on Tuesday at 12:00 UTC for the first time since January 7, 2018, according to the CoinDesk 20 price index.
The increase pushes the major cryptocurrency’s total market capitalization to over $ 315 billion, just short of its all-time high of $ 335 billion.
From its annual low below $ 4,000 in March, when prices plunged more than 50% in a single day, BTC has rebounded by more than 330%. Since January 1, the leading cryptocurrency has gained 130%.
BTC’s “spectacular surge” in 2020 largely mirrors its 2017 trajectory, Ben Zhou, co-founder and CEO of derivatives exchange Bybit, told CoinDesk in an email. A key difference this time around, however, is the “infusion of institutional money”.
With Monday’s rally, BTC is trading roughly 15% below its all-time high of nearly $ 20,000 set in December 2017.
Alternative cryptocurrencies (altcoins) are following in the wake of bitcoin. The major altcoin ether (ETH) is trading at $ 465 at the last check, up 20% this month. Litecoin (LTC) has gained around 30% from month to month. Even dogecoin, which remained quiet after its short-lived TikTok craze in July, was up nearly 10% on Monday before returning some of its gains in the afternoon trading hours.
Despite BTC’s strong performance in a predominantly spot market-led rally fueled by North American buyers, exchange trading volumes remain relatively insignificant. For example, the monthly volume of Coinbase’s BTC / USD trading pair has remained virtually unchanged since June.
November could mark a shift in that trend, however, as over-the-counter trading is growing at a steady pace. In mid-November, the volume of the industry-leading B2C2 desk was roughly equal to that of the entire month of October, founder Max Boonen said in an email. “Market prices may also vary little or no volume,” he added.
As BTC continues to rise, Zhou told CoinDesk: “We may see minimal resistance until the price of bitcoin approaches its all-time high.”
