Bitcoin skyrockets above the $18,000 mark to reach its all-time high of $18,062 at 03:01 UTC, last seen since Dec. 16, 2017. Experts and analysts are claiming that the latest price rally can be attributed to global events and the recent bullish analogies on the crypto coin. According to data based on CoinDesk, the cryptocurrency is up by over 146% on a yearly basis.
Bitcoin Skyrockets Above $18,000
Bitcoin has ranged between $16,560 and $18,062 over the past 24 hours. The largest cryptocurrency by market capitalization gained over 70% in this quarter alone.
Antoni Trenchev, co-founder and managing partner at crypto lender Nexo, told CoinDesk publication on why Bitcoin might be on its continual rise:
“A few recent events have undoubtedly had an impact. Institutional investment by the likes of MicroStrategy and Square, PayPal actively shilling crypto, and the bitcoin halving in May.”
Meanwhile, other crypto experts believe that the recent COVID-19 pandemic along with the negative interest rates in the conventional financial market has led to the positive performance of the cryptocurrency.
Ki Young Ju, CEO at analytics firm CryptoQuant, shares his view on the negative interest driving crypto adoption:
“Interest rates are the most important factor in people’s decisions on where to deposit money. I’m sure negative interest rates will drive adoption in crypto whether it’s direct purchasing crypto/index funds or using staking services.”
Increased Government Spending Driving Bitcoin Prices
One of the major reasons for the positive performance of the recent crypto market this year can also be attributed to the recent government spending policies from the major central banks of the world.
Kyle Davies, the co-founder of Three Arrows Capital, shares his analogy on increased government spending driving up prices of Bitcoin:
“I think it basically comes down to monetary and fiscal policy. Central banks can lower rates until they get to slightly negative, and then they have to print money.”
Bitcoin is not the only cryptocurrency approaching an all-time high. Ether cryptocurrency has also shattered its yearly record to shoot above the $488 mark.