Bitcoin has set another historical record of a new all-time high to exceed above $35,000. The continual rally saw the cryptocurrency rising more than 800% since mid-March, 2020 when its valuation was only $3000. The cryptocurrency has since gained by more than 20% in Jan 2021 alone. The cryptocurrency saw its yearly gain of around 300% driven largely due to institutional investments.
The latest all-time high comes just two days after BTC faces its biggest one-day decline since March. The cryptocurrency has since jumped nearly 12% to top the previous high record of $34,544.
After setting its previous ATH record earlier this week, the cryptocurrency bounced between $32,500 and $34,500 following a fast retracement down to $28,000 the following day. The crash was only for a short while with the cryptocurrency exceeding again to its new all-time highs above $35,800.
Meanwhile, Ethereum too saw a positive performance in the crypto market by exceeding above $1,100 while gaining over 44% since the past week.
Bitcoin’s fresh record comes a day after the U.S. Office of the Comptroller of the Currency published guidance on federally chartered banks using stablecoins and public blockchains for settlement.
Bitcoin’s continual can be mostly attributed to its growing list of institutional investors. The most recent additions include Skybridge Capital investing up to $25 million in December 2020; MassMutual investing up to $100 million in Bitcoin, in the same month.
The above-mentioned list of institutional investors invested in Bitcoin while gaining record high returns on their investment. For instance, Microstrategy recorded gains upwards of $1 billion on its Bitcoin investment.
Other notable investors including Paul Tudor Jones, Scott Minerd, and Stan Druckenmiller, have either started allocating funds into Bitcoin or have said they’re open to doing so. The influx of institutional investments on Bitcoin comes due to the cryptocurrency offering a hedge against dollar weakness and inflation risk.