Bitcoin has shown over the last few weeks beginning from the last week of 2020 is that the sky will always be the limit for its price. The digital asset, which was selling at just $3,500 around the middle of March 2020, has defied all odds and made a series of massive jumps to trade at around $34,000 presently.
Beginning 2021 with some style, Bitcoin furthermore saw an upward surge, which saw the price of the leading digital asset gain 14.73% on Sunday morning to move its price above the $34,000 price mark. With Bitcoin breaking above the uncharted territory of $20,000 towards the tail end of last year, the digital asset ended the year with a bang, amassing close to a 305% increase last year.
Experts compare the latest bullish run to the one of 2017
Taking a critical look into the details surrounding the end of the year bullish run that the digital asset went through, one would notice a 50% gain around that time. With several financial markets and entities closing the year around last week, the whole world was focused on Bitcoin as the digital asset first flirted with the $29,000 price mark before going on to hit $30,000 on Saturday. When everyone thought the digital asset would either rest or make a healthy price correction, it continued on that bullish momentum till this morning.
With one of the most asked questions being how long this current bull run will last, experts and enthusiasts have started to compare this bull run to the one in 2017. Around the time Bitcoin started to shed off value in 2018, famous economist Nouriel Roubini said that the digital asset was speculative and would never hold any fundamental value. It looked like Roubini’s prediction came through as Bitcoin saw a crash and started a journey of an unsure future some weeks after the price surge.
Institutional participation added to the major boost to Bitcoin’s price surge
With people now comparing the surge of 2017 to the one that started last year and has entered this year, there are a few absent factors then but are now present. The first of the factors is the institutional participation in the market.
Institutional investors such as Grayscale started to show interest in the leading digital asset last year after the investment announced that it had amassed a huge chunk of the digital asset. What followed was the announcement by other institutional investors that they had purchased Bitcoin.
Institutions like Microstrategy and Rothschild investment announced that they had made a massive Bitcoin purchase. One of the reasons institutional participation has been on the rise is because of various qualities that Bitcoin possesses, including hedge abilities.
Bitcoin outperformed various financial market assets to end last year as the digital asset saw a gain of 305% compared to the S&P 500’s 68% and gold’s 25% rise. While things might change in the future, one can seek compromise in the fact that Bitcoin is here to stay.