Bitcoin’s price sets new records: it surpassed $ 22,000 for the first time. According to TradingView, at the time of writing, the world’s first and largest cryptocurrency is trading around $ 22,167 on Coinbase.
This means that Bitcoin has risen 450% from its lowest point in March and 190% since the beginning of the year.
Comparisons were made with the last 2017 bull run, and analysts concluded that the rally this year is different.
How Did the Bitcoin Price Rise?
The 2017 bull coach was characterized by retail speculation, with institutional investors at the forefront of the 2020 rally.
The price of digital currencies soared overnight as optimism about corporate demand grew. This happened after One River Asset Management joined forces with Brevan Howard to invest more than $ 600 million in Bitcoin. Other big investors like Ark Invest and MassMutual have also invested millions in Bitcoin. Similarly, companies like PayPal and Square purchased a significant number of Bitcoins.
In addition, the US dollar continued its downward trend after the Fed made the final interest rate decision of the year. As expected, the bank dropped interest rates between 0% and 0.25%. He also committed to continue buying bonds until the economy is back in order, which means a low unemployment rate and stable inflation. This means that the bank will continue to buy at least $ 120 billion in bonds per month for the foreseeable future. The Fed expects the economy to shrink 2.4% this year and then rise by 4.2%.
The BTC / USD pair rose to an all-time high as optimism about the digital currency’s future grew. On the daily chart, the price rose above all moving averages. After comfortably passing 20,000, the next main target to be pursued will be the psychological level of 25,000.