Bitcoin Surges Past $18,000, Nears All-Time Highs

Bitcoin Surges Past $18,000, Nears All-Time Highs

*OspreyFX would like to state that traders should research extensively before following any information given hereby. Any assumptions made in this article are provided solely for entertainment purposes and not for traders to guide or alter their positions. Please read our Terms & Conditions for more information.

Key Takeaways:

• The leading cryptocurrency strengthens its position further
• High-profile figures and institutions express interest in Bitcoin

Bitcoin has received a substantial amount of attention lately. Indeed, the biggest cryptocurrency by market cap is up 40% for November. On Wednesday, Bitcoin surged towards its all-time high reached in December 2017 and traded as high as $18,465. Having eased off its highs, it is now trading at $17,780. Back in December 2017, it peaked at $19,460 before experiencing a deep decline that led to a low of $3,043 in December 2019.

Year-to-date, Bitcoin is up 160%, given that it started the year trading at $6,910. After being left out of the picture for quite some time, the coin’s recent rise puts it at the forefront of the investment outlook as we head into the closing of the year.

The digital currency was caught in a wide range consolidation following the all-time high up to the present moment with prices fluctuating between $6,000 and $9,000 with a few highs above $10,000 and a couple of lows below $4,000.

So, what’s leading the current staggering rally in Bitcoin? The price collapsed in March to reach $3,800 in tandem with the pandemic lows. Since then, the exchange rate has made a spectacular comeback, gaining over 380%. This time around, however; compared to the steep climb in 2017, institutional investors are warming up to the idea of having Bitcoin in their portfolio. Some add it as a haven or protection against inflation, others as a means to diversify or own a high-risk growth asset that can produce higher returns over the years.

The Big Players Display Interest in Bitcoin

Legendary hedge fund managers such as Stanley Druckenmiller and Paul Tudor Jones are also driving interest in the crypto space. Both investors disclosed their Bitcoin ownership, thus bolstering the market’s credibility. Ray Dalio, the founder of the world’s largest hedge fund manager Bridgewater, is also taking steps to understand the asset. Mr. Dalio, who had shown skepticism towards the coin and insisted that the cryptocurrency will be outlawed by governments; is looking to change his approach. Famous for his open-mindedness, he took to Twitter this week and kicked off a Bitcoin discussion with the community regarding Bitcoin’s value and its investment properties as an asset.

Paypal Joins the Flock

PayPal’s recent decision to offer cryptocurrency services was also seen as a positive sign on the path to wider adoption. Some analysts attribute the latest growth in the crypto market to the ineffective monetary and fiscal policies and political uncertainty created by the looming pandemic-related economic and financial crises. To many crypto enthusiasts, the fiscal and monetary stimulus measures in the US and Europe lessen the appeal of fiat currencies like the US dollar and Euro and shift the focus to modern investment options like Bitcoin.

With large-scale well-known institutions involved and hedge funds positioning in Bitcoin, the breakneck move to the upside appears to be more sustainable than the 2017 rally spurred by crypto fans and retail investors. However, traders and investors should keep in mind that even though the market may be maturing, current volatility and uncertainty pose inherent risks in many ways as Bitcoin remains a highly speculative asset.

Interested in Trading Crypto?

OspreyFX is the perfect partner to help you on your trading journey. We offer a broad range of cryptocurrency pairings, optimal security, competitive spreads, low commissions, and dedicated 24/7 customer support. Sign up today to get started in the exciting world of financial markets.