According to Coindesk, the world’s highest market capitalization in cryptocurrency hit a peak of $18,062 at 03:01 UTC, a price point not seen since December 16, 2017. For the last 24 hours, bitcoin has ranged from $16,560 to $18,062.
Bitcoin (BTC, +8.69 percent) is now up 146 percent on a year-to-date basis and has risen almost 70 percent so far this quarter, according to CoinDesk 20 data.
“A Few recent events have undoubtedly had an impact,” said Antoni Trenchev, co-founder and managing partner of the crypto lender Nexo. “Institutional investment like MicroStrategy and Square, PayPal’s active crypto shilling, and bitcoin’s halving in May,” are possibly the source of bitcoin’s continuous increase.
Others see global developments such as COVID-19 and low interest rates in developed economies, such as Germany, as the outliers this year for bitcoin’s meteoric growth. “Interest rates are the most important element in people’s decisions on where to deposit money,” said Ki Young Ju, CEO of CryptoQuant. “I’m sure negative interest rates would push crypto adoption whether it’s a direct purchase of crypto/index funds or the use of sketch services.”
Although Bitcoin is fast approaching its all-time peak of $19,666 on December 17, 2017, Ether also broke new 2020 heights above $488 to stand by press time at $489.
Another reason may be due to central banks’ easy cash policies and rising government spending in recent months from some of the biggest economies in the world, including Europe and the US.
Kyle Davies, co-founder of Three Arrows Capital, said, “I think it basically comes down to monetary and fiscal policy.” “Central banks can lower rates until they get t slightly negative and then they have to print money.” Davies maintained that the reliance of central banks on freshly printed money would make “BTC attractive.”