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The price of bitcoin rose above $ 19,000 for the first time in nearly three years.
The cryptocurrency is now less than $ 1,000 from hitting its all-time high, having traded below $ 5,000 in March alone.
Analysts have attributed the recent rise in bitcoin prices to increased institutional investment, which was spurred by my economic and geo-political uncertainty caused by the coronavirus pandemic.
Other major cryptocurrencies, including Ethereum (ether), Ripple (XRP) and bitcoin cash, also underwent significant market movements on Tuesday, with all three rising between 5 and 35% in the past 24 hours.
A recently leaked report from a senior Citibank analyst described bitcoin as “21st Century Gold” and suggested that current market trends could push its price to $ 300,000 next year.
Bitcoin’s infamous volatility will likely mean that if further gains are to come, a hefty slump will likely follow as well.
“Bitcoin’s entire existence has been characterized by unthinkable rallies followed by painful corrections (the kind of pattern that supports a long-term trend),” the report said.
“This [latest surge] could potentially peak in December 2021 … suggesting a move up to $ 318,000. “
(CoinMarketCap)
In addition to institutional investors, online search trends suggest that there has also been a surge in mainstream interest in recent weeks.
Google’s global searches for the term “ bitcoin ” increased 112% year-on-year, according to data presented by Stock Apps, which revealed that some of the biggest spikes have occurred in African countries.
As bitcoin approaches its all-time high, some analysts have warned that the market may drop when it hits $ 20,000.
The volatile history of Bitcoin in pictures
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“I am aware of the momentum and would like to warn that the market looks a bit overbought right now. It is possible that at $ 20,000 we could see some investors taking profits – or if they bought in 2017, cut their losses and break even – and that could see the Bitcoin price entering a short period of consolidation, “Simon Peters, a market expert on eToro’s online trading platform, said The independent.
“Given that on-chain unrealized profit / loss data currently shows that most bitcoin addresses are in profit, it’s not bold to expect a sale at $ 20,000 or even slightly earlier.”
