The cryptocurrency is enjoying the biggest price increase in three years.
Bitcoin set a new record for the highest price. The cryptocurrency reached $ 19,900 on Monday – the highest price it has achieved in three years.
Bitcoin last approached the $ 20,000 mark in December 2017. Since then, there have been many difficulties, with its value at times falling below $ 4,000.
Since last year, however, the cryptocurrency has shown indications of a new rise, increasing its price significantly several times. However, he did not transfer more than $ 13,000.
However, the pandemic and economic problems in 2020 had a positive impact on Bitcoin. Investors once again turned their attention to it as a means to invest assets during the difficult period.
Bitcoin initially collapsed along with financial markets in March, losing 50% of its value for the day. Since then, however, the cryptocurrency has risen in value more and more permanently and reached a record level. For now, the record does not lead to a decline, as the price of Bitcoin remains at 19,000.
This time, however, the rise of Bitcoin has not benefited other cryptocurrencies, notes CoinDesk. Ether is still at 58% of its historic peak, which was also reached in December 2017. Other cryptocurrencies such as Litecoin and XRP are even lower than their peak.
Therefore, the thesis that interest in Bitcoin came from investors during the crisis seems more realistic. It is less likely to be an assessment of the cryptocurrency as a means of payment. However, there are expectations that now more investors will appreciate Bitcoin and the cryptocurrency will permanently maintain high values. However, cryptocurrency has a history of unpredictability and often surprises all expectations.