Bitcoin moved up a record high of $23,000 for the first time in history as more big names rushed into the world’s largest digital currency up 220% this year.
This new record extends a wild rally for the cryptocurrency that has seen it more than triple in value 2020 alone.
This is the most-valuable digital currency surged 12% to $23,421.
Bitcoin’s 2020 performance has taken many market watchers of its frenzied rally to nearly $20,000 back in 2017, then it was followed by a sharp decline the following year. However, crypto fans claim this year’s rally is unlike 2017 as it’s being driven by institutional buying rather than retail speculation.
Eric Demuth, CEO and co-founder of cryptocurrency trading app Bitpanda said “this run is completely different to the one in 2017”, “back then, the price was driven by mainly retail investors” he added.
“Now, we additionally have billionaires praising bitcoin and investment funds securing significant positions worth hundreds of millions. The big players that were once very distant from bitcoin and were outspoken critics are now joining in with the run.”
Investors like billionaire Berkshire Hathaway and CEO Warren Buffett have linked trading in the digital currency is similar to gambling.
However, Coinbase CEO Brian Armstrong has provided words of caution to new cryptocurrency buyers amid this sharp rise to fresh all-time highs.
In a blog post, the CEO of the leading cryptocurrency exchange said his company takes a “long-term view of the market” without emphasizing that cryptocurrency investing was “not without risk.”
“While we’re always excited to see increased interest in crypto, it’s also important to point out that this is not only a time of high volumes but also price volatility,” Armstrong wrote. “The market can move in either direction much faster than equity markets.”