Bitcoin going through the roof with record high
Bitcoin continued its price rally, rising to US$23,000 this week, a record high in the cryptocurrency's 12-year history.
Its value has increased 215 percent in 2020, making it one of the highest-performing investments in the world.
The price increase is due to more institutional investors, a smaller supply and higher profile in the investment market, analysts said.
“Bitcoin now stands steadily on the line of US$20,000 with the market and investors’ wide recognition,” said Xu Tong, a senior analyst of Huobi, a major cryptocurrency trading platform in China.
After standing above US$20,000 on Thursday, investors poured money into the cryptocurrency, fueling its meteoric rise, according to market observers.
Grayscale Investments, one of the biggest cryptocurrency funds, has seen its value increase 114 percent in the past two months to more than US$10 billion. The growth came primarily from institutional investors, including hedge funds.
After every 210,000 blocks, or transactions, the reward of each block, or the output of Bitcoin, is halved, according to Bitcoin’s mechanism designed by founder Satoshi Nakamoto.
The decreased supply speeds up the growth of Bitcoin's price, and analysts are bullish about its 2021 prospects.
It may experience another bump in 2021 if a booming cryptocurrency wave comes to pass, which could boost its value to more than US$50,000.
China has strong regulations on cryptocurrency trading for personal investors and operating platforms, which are often riddled with high risk and fraud.
Bitcoin price index by Coindesk
