With a price of now over 19,000 US dollars, Bitcoin is approaching its all-time high of the end of 2017 in large steps. At that time, the price of cryptocurrency reached values around 20,000 US dollars, which was then followed by a sudden decline. The Coinmarketcap platform currently has an average price of 19,188 US dollars.
Bitcoin has grown in value in the past few weeks. In March, the price had marked an annual low, since then it has increased with interruptions. Bitcoin has been climbing steeply again since the beginning of October, and the digital currency has since recorded an increase in value of around 75 percent. Just a week ago, the price climbed above $ 17,000 for the first time.
Amateurs and professionals in coin fever?
The pace of the price increase is reminiscent of the Bitcoin buying frenzy at the end of 2017, when Bitcoin also rose by $ 1,000 or more almost every day – and fell significantly again the following spring. Two factors in particular are seen as the drivers of the current rally: PayPal’s gradual entry into the business of payments and trading via cryptocurrencies and the increasing interest of institutional investors.
So speaks about the crypto money investment company Pantera Capital of a real explosion in demand from PayPal users: within the four weeks since the payment service has been offering its customers crypto money trading, they would have bought a volume of around 70 percent of the coins newly generated during this time. In addition, there would be demand from other end-user apps such as Cash, operated by the payment service Square, which, like PayPal, enable users to crypto trading with low entry barriers. The result is a shortage of fresh coins that drives the price.
On the part of professional investors, more and more money seems to be flowing into the crypto market. The investment firm Grayscale prides itself on having achieved a $ 1 billion inflow of funds for its large investor cryptocurrency funds in the third quarter alone. At the same time, money would be withdrawn from gold ETFs, reports the specialist service The Block citing an analysis by the major bank JP Morgan. And just a few months ago, the large asset manager Fidelity launched a Bitcoin fund.
Ripple price more than doubled
Other cryptocurrencies have also been able to celebrate a real price frenzy in the past few days: For example, Ripple has increased in value by around 120 percent in the past seven days, according to Coinmarketcap. At around USD 0.66, digital money, which is primarily intended for banks, is still a long way from its previous high of between USD 3 and 4. Ethereum, the big number two in the crypto world, which is still small compared to other financial markets, reached a price of over 600 US dollars for the first time since summer 2018. The all-time high in January 2018 was well over $ 1,000.