Investors are up for a treat after Bitcoin, which is a type of cryptocurrency, sells at a record high of $17,000. This is the first time in the last three years that the price of the cryptocurrency reached such levels. The Coronavirus pandemic is still devastating a huge part of the US. In fact, even many parts of the world are experiencing second wave surges in the past couple of weeks. Many people are wondering why the Bitcoin prices are suddenly so high.
Although in the past few days, the price of Bitcoin has been fluctuating between $15,800 to $16,000, the sudden spike to $17,000 is still a massive surprise for investors. Here are some of the reason why Bitcoin suddenly reached an incredible record even in the middle of a pandemic:
A COVID-19 related stimulus
The COVID-19 pandemic has affected the global economy in ways no one has ever imagined. Super economies all over the world are suffering from major recessions, and the worst is yet to come. At the beginning of the pandemic, Bitcoin has been following closely with the regular markets. But the trends have changed and have turned in a surprisingly optimistic direction. Traders consider cryptocurrency as a “haven” similar to gold which is flocked by investors during economic difficulties. Many people are now betting on investments to get a better chance of earning for their expenses.
Big investors are cashing in on Bitcoin
Because of its safe-haven status and its rising popularity among investors, Bitcoin has been attracting more interest with bigger buyers. Bigger traders are investing more money in cryptocurrency. Celebrity investors like Paul Tudor Jones and Stanley Druckenmiller have set their eyes on cryptocurrency. This has influenced more people to consider cryptocurrency as well if the big-wigs are taking an interest.
Major companies are also making moves towards the cryptocurrency space. In fact, some tech giants are now accepting cryptocurrency as payments for their goods. Major companies like Facebook even launched their own cryptocurrencies. Although not all major tech companies accept all forms of cryptocurrency as payment, the positive trends of cryptocurrency behavior may change this in the years to come.
An Influx of Whale Traders
One of, probably, the biggest reasons for the sudden spike of Bitcoin trading prices would be numerous whale trades over the past several days. Experts say that both whales and miners have been selling significantly larger amounts of Bitcoin throughout the month. Traders are also saying that the pattern that Bitcoin is in now seems pretty optimistic.