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Bitcoin is at $17,000, a first since January 2018

Photo of: Nathan VDH
by Nathan VDH

On Tuesday, November 17, 2020, Bitcoin (BTC) passed the $17,000 mark for the first time since January 2018. At the time of writing, BTC is worth $17,157 and is up 4.5% in one day and 11% in one week. It has also risen 49% in one month and 99.5% in one year.

It took one week for Bitcoin to go from $15,000 to $16,000 and five days to reach $17,000.

And while BTC outperformed Ethereum (ETH) today (+3.5%, USD 471), cryptocurrencies such as XRP, Litecoin (LTC), grew by more than 9%, Polkadot (DOT) and Cardano (ADA) – by more than 8%.

“We are currently witnessing an extremely bullish action in BTC prices. Thanks to a combination of market structure and strong fundamentals, BTC could now be days away from reaching its historical high of $20,000,” said Nicholas Pelecanos, Head of Trading at NEM (XEM), in an email commentary.

According to him, this price increase is explained in particular by the willingness of investors to protect themselves against inflation “Wall Street has been for weeks in a dynamic of printing money undertaken by the Federal Reserve”.

“In the United States, we are even seeing government officials or former government officials starting to invest in Bitcoin. SkyBridge Capital, an investment firm founded by Anthony Scaramucci, former White House communications director, said in several documents that the fund can hold long and short positions in digital assets.

U.S. Senator-elect Cynthia Lummis recently announced that she hopes to bring Bitcoin into the national debate and that it should be considered as a store of value to counter U.S. dollar inflation,” said Kadan Stadelmann, Chief Technology Officer at Komodo (KMD).

Also, Tom Fitzpatrick, CEO of Citibank, said last week that “Bitcoin was the new gold and “it could reach $318,000 by December 2021”.

“While that seems unlikely, it would only be a 20-fold increase at a time when the case for Bitcoin may well be the most compelling of all time,” he said.

In the meantime, opinions are divided as to whether the increase will attract many new investors.

“The number of questions I’m getting now is a fraction of what I was getting a few years ago when everyone was talking about Bitcoin,” Kathy Jones, head of fixed income strategy at the Schwab Center for Financial Research, told Bloomberg.

Matt Maley of Miller Tabak + Co. told Bloomberg that institutional investors could pay more attention to cryptocurrencies – he has answered a few calls on the subject in recent weeks.