In a significant development, Bitcoin extended its bull run smashing its previous record and surging over $30,000 for the very first time; investors and traders are betting that the digital currency is on its way to becoming a mainstream payment method.
On Saturday, Bitcoin, the world’s most popular cryptocurrency traded as high as $33,099 with almost all other markets closed over the first weekend in 2021. It was last up about 12% at $32,883.
In 2020, the price of the cryptocurrency surged by more than 300% and with this latest development it has added more than 50% since crossing $20,000 just two weeks ago.
Bitcoin, a blockchain currency, has been around for just a decade. In 2020 it saw an increased investor appetite, especially from large U.S. investors, who are attracted by its perceived inflation-hedging qualities, potential for quick gains, as well as expectations that it would become a mainstream payments method.
According to investors, the limited supply of bitcoin has helped power the surge in recent days. Some investors have also opined that it is a akin to gold and a safe-haven play during the COVID-19 pandemic.
“It’s very likely that the asset will eventually pass $100,000 per coin,” wrote Sergey Nazarov, cofounder of Chainlink, a global blockchain project, in an email on Saturday. “People have been steadily losing faith in their government currencies for years, and the monetary policies resulting from the economic impact of the coronavirus have only accelerated this decline.”
Bitcoin trades on numerous exchanges, the largest of which is Coinbase, which incidentally is slated to go public and become the first digital currency trading platform to be listed on Wall Street.