Bitcoinâ€™s incredible rally continues as it sets back to back records after surpassing the $36,000 and $37,000 marks within a few hours
Bitcoinâ€™s price rose to a new all-time high earlier today as it traded above $37,700 on various cryptocurrency exchanges. This rally came a few hours after smashing the $36,000 mark as its incredible bull run continues.
The leading cryptocurrency began the year on a high note after ending 2020 at a high price level of $29,000 per coin. Bitcoin has since then added $8,000 to its price, representing a 31% increase over the past week.
The rally to $37,700 meant that Bitcoinâ€™s price is up by 7.1% over the past 24 hours. The leading cryptocurrency surged by nearly 400% in 2020 despite the Covid-19-induced pandemic affecting the global economy. Over 50% of the gain came in December alone as it broke its 2017 all-time high price of $19,800.
The core reason behind Bitcoinâ€™s recent massive growth is the narrative that it is digital gold. Bitcoin is increasingly becoming a strong asset class, with institutional investors and famous retail investors pumping billions of dollars into the market.
According to the investment bank JPMorgan, Bitcoinâ€™s gain is coming at the expense of gold. The gold exchange-traded funds (ETFs) have lost billions of dollars in recent months, and JPMorgan strategists believe the funds have been diverted to Bitcoin.
The current political uncertainty in the United States could have fuelled Bitcoinâ€™s further growth. Yesterday, pro-Trump supporters stormed Capitol Hill to stop the election certification process that was underway. The supporters believed the election was rigged to favour president-elect Joe Biden.
The cryptocurrency market rally was not restricted to Bitcoin as altcoins also had a memorable few hours. The leading performer was Stellar Lumen (XLM), which recorded a 74% price increase over the past 24 hours. XLMâ€™s rally came after the government of Ukraine announced it would be developing its central bank digital currency (CBDC) on the Stellar network.
Ethereum continues its rally, and it is getting closer to its all-time high price of $1,500. The launch of Ether options on CME is a crucial factor in the cryptocurrencyâ€™s rally. Overall, the cryptocurrency market cap reached $1 trillion for the first time in its 12-year history. Bitcoin still accounts for nearly 70% of the total crypto market cap.