It’s done, Bitcoin exceeds $20,000 for the first time and even continues to climb to $23,000. And this surge also pulls the value of Ether to its highest level in 2020.
After weeks of hesitation and brutal setbacks, the $20,000 goal is a reality for Bitcoin. This leap is taking place at a time when several institutions are making their debut in cryptocurrencies, such as the American insurer MassMutual or Ruffer Investment.
It is therefore a historic first for Bitcoin, and only two weeks after briefly breaking its 2017 historical high. And for many analysts, the context is different this time.
“Large institutions are there for this tour de force, unlike the 2017 Bitcoin bull run driven by the retail sector,” that is to say, individuals. This was the argument recently developed by Tyler and Cameron Winklevoss of the Gemini exchange.
This new environment therefore gives hope for the continued growth of Bitcoin. The weight of institutional investors in the market should preserve the value of sales of a few whales, unlike in 2017.
For these investors, Bitcoin primarily serves as a long-term investment. The current monetary context tends to encourage them to do so. For Ruffer, Bitcoin must therefore “act as a hedge” against certain risks arising from the fragility of the monetary system.
“We see this as a small but powerful insurance policy against the continued devaluation of the world’s major currencies,” says the asset manager. For the latter, Bitcoin now weighs 2.7% of its 27.3 billion assets.
Institutions as well as wealthy investors increasingly tend to view Bitcoin as a store of value. Bitcoin “is the best cash reserve asset in the world and the emerging dominant money network,” says MicroStrategy’s CEO.
“As this news spreads, the world will change for the better,” said Saylor.
And the growing adoption of Bitcoin is also benefiting other crypto-actives, especially Ether, the Ethereum token. After an 8.5% increase on December 16, cryptocurrencies reached their highest level in 2020, at $650.
This week, Santiment was also measuring a new record for creating Ethereum addresses. “The increase in the number of addresses interacting on an asset’s network is a very promising indicator for bulls,” the specialist warned.