On Tuesday, Bitcoin, the original cryptocurrency, had breached its highest level since December 2017 as crypto traders’ optimism seemed to have ramped up over prospects of mainstream acceptance of a raft of digital currencies in a near-term outlook.
In point of fact, a surprisingly robust rally for Bitcoin, which had witnessed an upsurge of 150 per cent thus far in 2020, has been gathering steam over the recent months after a slew of strong Government stimulus packages alongside Central Bank measures aimed at weathering the fiscal consequences of pandemic-driven storms, had bolstered appetite for riskier assets.
On top of that, Bitcoin’s so-called reputation of being inflation-proof, which is often over-exaggerated, added to further bullish wing to crypto traders’ hopes.
Bitcoin surges to highest level since December 2017
Apart from that, Bitcoin’s record-setting rally over the recent past had also followed a number of prudent measures from major Central Banks to initiate trading in digital currencies, while the People’s Bank of China (China’s Central Bank) had begun a test project last month to gauge the feasibility of a digital Yuan.
Besides, the European Central Bank (ECB) had been quoted saying that it would soon launch a digital version of euro. Besides, online cross-border payment processor, PayPal Inc. said last month that it was going to allow its customers to buy and sell major cryptocurrencies such as Bitcoin from their digital wallet, intensifying hopes of a mass-acceptance of crypto currencies in a near-term outlook.
Quoting statistics, on Tuesday’s market closure, the largest cryptocurrency by market cap, Bitcoin shot up as much as 6.1 per cent to $17.760 after hitting an intra-session high of $17,868 earlier in the day, while other major cryptocurrencies likes of Ethereum and Ripple which often move in line with Bitcoin, gained as well.
Ethereum rose 4.2 per cent to $479.91 and Ripple jumped 4.5 per cent to $0.30 on Tuesday’s market wrap-up. Meanwhile, citing prospects of further upswings in the values of major cryptocurrencies in a near-term outlook, a head of trading at NEM, Nicholas Pelecanos said, “Driven by a mix of market structure and strong fundamentals, bitcoin could now be within days of reaching its all-time high.
Underlying this bullish price action is the inflation hedge narrative that has captured Wall Street since the immense money printing campaigns undertaken by the Fed earlier this year. ”