The Bitcoin Network completed it’s 12th year anniversary, recording rally of $34,000 for the first time ever early Sunday morning. Bitcoin was keeping stable at $30,000 until 02:30 EST Sunday giving a torrid start to the year. Once the price of the leading cryptocurrency crossed the $30,000 mark for the first time — something it had struggled to do for the last couple of days — it exploded upwards like a ball released under water, reaching a new all-time high of $33,136.92 and then continuing the push, breaching $34,000 hours later.
The latest gains come two days after bitcoin closed out a year in which the cryptocurrency rose more than 300%, with an almost 50% gain in December alone, sort of like a boulder gaining speed downhill, only in the opposite direction. On Nov. 30, bitcoin breeched a nearly three-year-old high of $19,793. By the close of Dec. 31, the cryptocurrency had risen about $10,000.
Propelling the record-setting run is a growing narrative that bitcoin represents a form of “digital gold,” along with a flood of institutional investors into the cryptocurrency: Among them: Anthony Scaramucci’s Skybridge Capital ($182 million in December); MassMutual ($100 million in December); and Guggenheim (up to 10% of its $5 billion macro fund).
Growing global macro uncertainty may also be playing a factor in the recent surge. A peaceful transition of power in the U.S. is no longer the iron clad guarantee it used to be as 11 GOP Senators say they’ll vote to reject the electors from certain states. While it’s still almost certain President-elect Joe Biden will assume office later this month, the need for a qualifier is a new event.
That plus a mutated strain of COVID 19, a lagging world economy, and concerns over the effects of the now-completed Brexit, may not be helping the zeitgeist, but could be aiding bitcoin which some see as insurance against global chaos.
Bitcoin may also be benefiting from money being moved out of the XRP token and so-called privacy coins which are facing legal and regulatory challenges.
The cryptocurrency has also rose up the ranks of the world’s most valuable currencies, overtaking the Saudi Riyal into 17th place, just behind the Mexican Peso.