Bitcoin has just reached its highest level this year, surpassing $17,000. Investors ascribe this rise in value to the fact that most people have now come to perceive bitcoin as inflation-resistant. Another reason for the increase has been linked to the cryptocurrency being widely accepted by the mainstream.
Bitcoin has hit its highest level since 2018, climbing 3.6% to $17,325 last attained since January 2018. In 2020, this Bitcoin rose above 130% and has a value that is already greater than four-times its value in March.
Cryptocurrencies which move in sync with bitcoin like XRP and Ethereum gained between 2%-4%.
The last significant rise in Bitcoin’s value was in December 2017 with a value of $19,666. Analysts say that most fund managers, which help wealthy individuals manage money, now seek cryptocurrency as a shield against future inflation.
The supply of Bitcoin is pegged at 21 million. Advocates have maintained that the scarcity would hedge it against the government and central bank policies that induce inflation. The scarcity would also serve as a means to protect its innate value.
As said earlier, the cryptocurrency is now accepted by the mainstream. Last month, PayPal decided to welcome cryptocurrencies into its network. Since then, its value has risen by almost half.