Bitcoin is back on the rise. The cryptocurrency increased to $18,062 at closing on Tuesday, the highest it has been since 2017, according to CoinDesk. Bitcoin marks a 146% increase over a year.
The sudden hike can be partially attributed to the COVID-19 pandemic. Through aid provided by the government intended to spark movement in the economy and the support of companies and private investors who are moving away from conventional trading methods, Bitcoin was able to bounce back in a big way with a 4% spike in price within the last 24 hours.
“Incumbent players are now fine to play in the digital asset markets,” Charles Hayter, CEO of CryptoCompare, said. “The narrative that is compelling them to do so is this alignment of COVID, monetary policy and political disarray globally.”
Antoni Trenchev, the co-founder and managing partner of Nexo, a next-level crypto trading company, points out that the influx of support from digitally friendly companies, such as PayPal, MicroStrategy, and Square, helped push the cryptocurrency upward.
The last time Bitcoin reached these levels was in Dec. 2017 when it surged to $19,666 before seeing a gradual decline. Although Bitcoin has shown an increase to almost $18,500 by the close of Tuesday, the more investors make large sell orders, the more the price would fluctuation. Bitcoin would close at $18,169 on Wednesday.
It’s safe to say that while Bitcoin continues to reach high levels, investors will want to consider the pressure of profit-taking that will cause it to eventually dip.
