On February 21, the bitcoin rate reached a new maximum of $ 58,332.36, as a result of which the price growth of the top cryptocurrency since the beginning of the year was more than 100%. For the whole of 2020, BTC grew by 305%
Some analysts attribute the tremendous growth to huge demand from buyers looking to hedge against inflation, as governments continue to spend and central banks continue to print money, desperate to keep their economies afloat during the pandemic.
“Due to tremendous pressure from buyers in the form of ETF issuers, closed-end funds and large public corporations, who decided to open positions in bitcoin, demand significantly exceeds supply,” said John Willock, director of digital asset exchange Blocktane
The rise in the price of BTC this month was initiated by Tesla, which announced the acquisition of a $ 1.5 billion cryptocurrency. This caused a wave of questions “who is next?” in terms of transferring some of the treasury reserves to BTC and the resulting hype helped to draw investor attention to the sector as a whole.
Some speculate that the streak of record highs in the past few days is at least in part due to MicroStrategy, which raised over $ 1 billion in additional Bitcoin purchases on Feb.19 alone. The price of BTC has risen by more than $ 5,000 since the company announced the successful fundraising.
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