A year ago, on January 10, 2020, Bitcoin was valued at $7,808. And it was recently as October that it was hovering in price around $11,000. But for many and almost out of nowhere, the value of Bitcoin skyrocketed past the $41,000 mark to hit a new all-time high of $41,660 in the last 24 hours.
Right now, with retail investors increasingly eyeing bitcoin in light of its recent gains, new research shows how bitcoin “whales” accumulated a substantial number of bitcoin tokens in December, helping the bitcoin price to never-before-seen highs.
Bitcoin is on a tear.
Meanwhile, bitcoin’s reputation as “digital gold” continues to grow in recent weeks as governments around the world flood markets with unprecedented levels of freshly printed cash – leading to a surge of big name investors naming bitcoin as a possible hedge against inflation.
This growing macro-case for bitcoin has vindicated long time bitcoin believers who have cheered the latest price explosion.
Despite these expected “bumps,” most in the bitcoin and cryptocurrency space are predicting the bitcoin price will continue to rise over the long term.
That is absolutely nothing new – but the much wider feeling across Wall Street that “this time it’s different” is actually.
What The Heck Is Bitcoin?
To begin with, a quick refresher for the uninitiated:
The first mention of a product called bitcoin was in August 2008 when 2 programmers with the help of the names Satoshi Nakamoto and Martti Malmi registered a new domain, bitcoin.org. In October of the same year, Nakamoto released a document, considered a white paper, entitled “Bitcoin: A Peer-to-Peer Electronic Cash System.”
It was the birth of an entirely new financial paradigm.
Indeed, Bitcoin was invented in 2008 and launched in 2009, just as world governments were printing money to respond to the global economic crisis. A slew of other digital assets followed.
Bitcoin Rages Higher In 2020
Bitcoin prices fell steadily after sharp rallies in 2013 and 2017, but these declines were not precipitated by any major event spanning multiple asset classes. The digital coin was merely cut by the other advantage of speculation’s blade; worries about hacking risks, for instance, hampered cryptocurrencies in 2018.
So the bear market of 2020, short as it was, marked the first time Bitcoin as well as other digital currencies faced a really global crisis that threatened many sorts of investments.
Bitcoin bounced quickly, as most of the big institutional funds moved in once they saw how the bitcoin price continued to move higher.