Bitcoin (BTC) traded above $17,000 Tuesday at 12:00 UTC for the first time since January 7, 2018, according to the CoinDesk 20 price index. The raise puts the overall market capitalization of the largest cryptocurrency at more than $315 billion, only short of its $335 billion peak.
Since its yearly lows below $4,000 in March, when prices crashed over 50% in a single day, BTC has rebounded by more than 330%. Since Jan. 1, the leading cryptocurrency has gained 130%.
BTC’s “spectacular surge” in 2020 largely reflects its 2017 trajectory, Ben Zhou, co-founder and CEO of Bybit exchange derivatives, said in an email to CoinDesk. However one main change this time is the “infusion of institutional money. “With Monday’s rebound, BTC is now trading roughly 15 percent below its all-time peak of nearly $20,000 set in December 2017.
According to Coindesk.com, alternate cryptocurrencies (altcoins) are being tracked throughout bitcoin’s wake. Leading altcoin ether (ETH) is trading at $465 at the last update, up 20% this month. Litecoin (LTC) has been rising at about 30% a month to date. Even Dogecoin, who remained silent after his short-lived TikTok craze in July, spiked almost 10% on Monday, giving back some of his profits in the afternoon trading hours.
Despite the good success of BTC in a largely spot-driven market-driven rally fuelled by North American investors, trading volumes remain relatively unimpressive. For instance, the monthly amount of Coinbase’s BTC/USD trading pair has remained almost flat since June.
November could mark a shift in that trend, however, as over-the-counter trading is growing at a steady clip. Halfway into November, the amount at the industry-leading desk B2C2 was nearly equal to the entire month of October, said founder Max Boonen in an email. “Market prices can also move on little to no volume,” he said. As BTC continues to rally, Zhou told CoinDesk, “We may well see minimal resistance until the bitcoin price approaches its all-time high.”