The value of bitcoin climbed over 6 percent to $20, 676 on Wednesday, an all-time high reported in three years.
The number one cryptocurrency exceeded its early recorded peak of $19,864.15 recorded beginning this month. The surge also caused an outage in Coinbase, a significant US cryptocurrency exchange. Connection problems hit its retail and professional focused stages.
The assembly in bitcoin appeared after a 2017 spike in the digital currency when it increased by more than 900 percent to come close to $20,000 by mid-December.
The price of bitcoin has surged by more than 400 percent this year from a low point of around $3,600 in March 2020, according to CoinBase.
“When this “rally to near $20,000″ occurred in 2017, there was a genuine lack of products for the latest converts to experience, whereas today there are countless uses, protocols, services across farming, lending, standard trading, etc.,” Soravis Srinawakoon, CEO and co-founder of cross-chain data oracle Band Protocol told CoinDesk. “Therefore, we’d wait to see the new adopters hang around this time.”
Bitcoin’s preceding peak in 2017 led after frenzied buying by retail investors from Japan to the United States, recognized the cryptocurrency gain over 250 percent in just 35 days before losing 70 percent of its value in less than two months after its December 2017 high.
Crypto specialists assume bitcoins to cross the 1 trillion market cap soon. According to DW, there is approval from financial institutions such as Fidelity Investments and JP Morgan and public companies such as mobile payments firm Square, which has put some of its cash in the form of Bitcoin.
Guggenheim Partners, for instance, recently told it might invest up to 10 percent of its $5.3-billion Macro Opportunities Fund in a bitcoin trust.
Reports have also marked that Bitcoin continues unregulated. This trait, according to experts, increases its demand among its fans but at the same time, pushes others away.
Reports further highlight the volatile nature of the asset, which resides concentrated in very few hands, continuing to its volatility. Bitcoin has posted an average daily move of 2.7 percent this year, according to Bloomberg. By comparison, the price of gold saw swings of 0.9 percent.