Bitcoin Breaks $20,000 Psychological Level to Set a New Record-High
Bitcoin rose by 6.6 percent to a record-high of $20,573.15 per coin on Wednesday following weeks of consistent bullish run despite global uncertainty.
The world’s most capitalised digital asset with a US$380.926 billion market value broke a key psychological level during the U.S. trading session to surpass the US$19,920 record set on December 1, 2020.
Bitcoin value continues to surge with rising capital inflow from institutional investors following the U.S electors’ vote that validated Joe Biden as the next president of the United States.
Trying to explain the growing interest in the cryptocurrency space Soravis Srinawakoon, CEO and co-founder of cross-chain data oracle Band Protocol, said Bitcoin failed to cross the $20,000 psychological level in 2017 because of the limited products for new converts then.
However, with the growing adoption of blockchain technology and the introduction of numerous new products, new converts have more to experience today.
He said “When this [rally to near $20,000] happened in 2017, there was a real lack of products for the new converts to experience, whereas today there are endless uses, protocols, services across farming, lending, standard trading, etc.”
“Therefore, we’d expect to see the new adopters hang around this time.”
Breaking the $20,000 resistance level could open up Bitcoin for $100,000 as projected by most cryptocurrency investors, who over time have linked that key psychological level to broad bullish run and huge capital inflow from institutional investors.
With the total Bitcoins mined so far at 18,572,662 out of the 21,000,000 expected to be mined, growing demand amid scarcity could force the price of the world’s most dominant cryptocurrency even higher in the near-term.
Still, a series of new policies and regulations by Joe Biden-led-administration could halt the current bullish run and force the huge number of anonymous investors to cash out if the US and other governments decided to regulate the highly unregulated cryptocurrency market.