Investment

Bitcoin breaks records, rise above $20,000 for the first time ever

  • The world’s most-valuable virtual currency traded 5.6% higher to a price of around $20,600, according to market data from Coin Metrics.
  • It comes as big-name investors like Paul Tudor Jones and Stanley Druckenmiller have invested in the cryptocurrency.
  • Major Wall Street firms like S&P Global and Cboe Global Markets have been making a big push into crypto market data services.

Bitcoin is no longer the mirage it used to be – it is truly becoming the oasis in the desert.”

Bitcoin breached the $20,000 level for the first time in history Wednesday, as crypto enthusiasts pointed to increased demand from institutional investors for the red-hot digital currency.

The world’s most-valuable virtual currency traded 5.6% higher to a price of around $20,600, according to market data from Coin Metrics, taking its year-to-date gains to more than 180%.

Bitcoin has been on a tear this year. Analysts say it’s gotten a boost from big-name investors such as Paul Tudor Jones and Stanley Druckenmiller moving their own assets into the cryptocurrency, while tech firms such as Square and MicroStrategy have used their own balance sheets to buy bitcoin.

Other major cryptocurrencies also experienced significant increases in value, with including Ethereum (ether), ripple (XRP) and litecoin rising by between 4 and 7 per cent.

“This is the domino effect as asset managers tumble their portfolios into bitcoin,” Charles Hayter, CEO of crypto market data provider CryptoCompare, told CNBC.

Crypto evangelists claim the 2020 rally is unlike 2017 as it’s being driven by institutional buying rather than retail speculation.

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