Bitcoin Price Sets New Record High Above $19,783

Tuesday 01 December 2020, 3:12 AM AEST - 1 month ago

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After nearly three years of waiting, bitcoin investors can celebrate a new all-time high Monday after the leading cryptocurrency traded as high as $19,786, breaking the previous record set in December 2017 by $3.

Long-time bitcoin investors have weathered more than one bearish market cycle. But for newer participants, the record highs represent validation of their investment as the cryptocurrency continues to demonstrate resilience.

The significance of a new all-time high in dollar terms cant be understated, said Kevin Kelly, co-founder of Delphi Digital and former equity analyst at Bloomberg, in a direct message with CoinDesk. Many skeptics have publicly denounced bitcoin for failing to reach a new high despite such a favorable macro backdrop so this is yet another testament to bitcoins staying power.

That favorable backdrop includes, in part, an unprecedented era of spending on the part of central banks around the world to help combat the pandemic-induced economic slowdown. Many bitcoin investors view the digital asset as a hedge against potential inflation from this lose monetary policy.

Year to date, bitcoin has gained 167%. Since its yearly lows in March, after crashing more than 50% in a single day, bitcoin has rallied more than 400%.

To be sure, bitcoins positive correlation to traditional markets remains somewhat strong above 0.4, according to Coin Metrics, in contrast to a longstanding narrative supported by bitcoin investors that bitcoin is uncorrelated to traditional markets. With regular exchange outages and new investors questioning the reliability of widely circulated market data, moreover, the adolescent market has room to mature.

Nevertheless, cryptocurrency analysts depict the ongoing rally as healthy and primed to continue as institutional and retail money steadily flows into bitcoin. Mainstream payment companies like Square and PayPal, for example, continue funneling retail capital into bitcoin.

For Q3, Square reported a record $1 billion in bitcoin revenue via its CashApp mobile wallet. PayPal, after announcing ...

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