On the 16th of December, Bitcoin hit $20,000 for the first time ever. At press time, BTC is up 6.93% to $20,704.23. Cointelegraph that the new milestone is not similar to the 2017 rally, which came to an abrupt end after an impressive performance.
According to the report, several factors could push Bitcoin to soar over its new milestone. Cointelegraph stated some of the reasons as Bitcoin’s stronger network fundamentals, the rise in institutional demand, and the new trend among investors that the king coin is a store of value.
When Bitcoin reached its previous all-time high in late 2017, data showed that retail and mainstream investors may be the reason for the rally. At that time, institutional investors had not started acquiring Bitcoin. As a result, the 2017 rally ended abruptly after a strong performance.
However, BTC is now widely accepted among institutional investors, and there is a rise in trading activity. The report noted that CME BTC futures recently recorded $1.27 billion in open interests.
In addition, several institutions now view BTC as an alternative to gold. Some prominent investors have also referred to the asset as digital gold and have declared that significant percentages of their portfolio are now in BTC.
Since August, MicroStrategy has been acquiring BTC, making the digital token its primary treasury reserve asset. MicroStrategy’s CEO Michael Saylor said that Bitcoin is viewed as a hedge against inflations and a dependable store of value.