Bitcoin Price hits a new all-time High of $22,900
On Wednesday, Bitcoin price hit an all-time high of more than $20,000. The cryptocurrency rose by more than 6% on Wednesday to reach $20,632 (£15,283) against the US dollar. Extending a winning streak this year amid growing interest among big investment companies attracted to its potential for quick gains.
Bitcoin price has surged by more than 400% this year from a low point of around $3,600 in March. This is at the time when the coronavirus pandemic triggered a deep sell-off in financial markets around the world.
Analysts said that unlike in previous surges, a major price driver appeared to be more institutional investors buying into the cryptocurrency.
These investors are being attracted by the good returns that the digital asset class is currently offering. However, more importantly, by the huge future potential it offers.
Bitcoin price has been almost at $20,000 once before in 2017. After this, people developed interest in the cryptocurrency. Bitcoin price then crashed below $7,000 by early February 2018. However, it never wiped out to zero as forecast by some analysts at the time.
Investor interest has been growing in bitcoin as a potential way to safeguard against rising inflation. Expectations among City investors for higher rates of inflation have been growing in recent weeks. It is especially being fuelled by the prospect of a stronger global economic recovery next year thanks to the Covid vaccine. As well as stimulus measures from central banks and governments in advanced economies.
Investment Management Companies Shifting to Crypto after Bitcoin Price increase
Ruffer, last month made a bet on bitcoin that is now worth around £550m, in one of the biggest signals of growing demand among traditional investment managers. Ruffer is a UK-based investment management company with more than £20bn in assets under management.
A spokesman said the move was to diversify Ruffer’s portfolios into gold and inflation-linked bonds. “This acts as a hedge to some of the risks that we see in a fragile monetary system and distorted financial markets.”
Ayush Ansal, the chief investment officer of Crimson Black Capital, a hedge fund, said that public interest in bitcoin would be renewed over Christmas. “After being in a wasteland since the infamous bull run of late 2017, crypto, and bitcoin in particular, are back.
“Bitcoin price has been threatening the symbolic $20,000 barrier for some time and finally it has broken through.”