Bitcoin has managed to turn many into ‘crypto-believers’ in 2020. As the year turned into a series of unbelievable events, the Bitcoin price has affirmed that the king coin is here to stay. But Bitcoin had already reached $18k or rather close to $20k in the past, so why is this surge so important?
“…this acceleration of price has been largely led by the real gains and validation that we’re seeing, that we didn’t see in 2017,” said Catherine Coley, the CEO of Binance U.S. In 2017, we saw BTC’s price climb from 190%, from $6,775 to $19,666 within a matter of 34 days. However, this price resulted from a sudden surge and faced no resistance despite not seeing this value before. Additionally, this price did not seem to be supported by volume, but this could be due to the limited popularity of the digital asset.
Fast forward three years, we have seen massive changes in the crypto ecosystem and along with it the governments around the world are trying to understand it. There have been macro investors taking interest in the largest digital asset, while corporate treasuries are adding Bitcoin to their balance sheets, noted Coley during a panel interview with Yahoo Finance.
Just over the last couple of months, we saw giants like Square taken an interest in Bitcoin while Mike Novogratz’s Galaxy Digital opening a new Bitcoin fund in Canada. Adding to the interest were the crypto businesses still building around it relentlessly. As far as trading is concerned, Coley noted:
“…you’ve seen different ways of people being able to come into trading. So dollar cost averaging has actually been quite popular and quite successful for many investors in this past year, knowing that what lies ahead is definitely a digital future accelerated by the pandemic for sure.”
As Bitcoin roots itself in the market and among traders as a valuable asset, the regulators especially in the U.S. have been paying close attention to it. There have been various hurdles faced by crypto businesses. As per reports, 56 cases against crypto-related firms were brought up by SEC under the Chairmanship of Jay Clayton. As Clayton steps down ahead of his scheduled release in June 2021, it would be interesting to see his replacement and their stance over crypto.