Bitcoin Soars Over 5%, Hovers Near $18,200 Mark Amid Broad Rally

Bitcoin has surged exponentially since entering a four-digit value for the first time in 2013.

Cryptocurrency Bitcoin jumped by more than $850 – or 5 per cent – to touch the $18,238.20 mark on Sunday, inching towards an all-time high of $19,666 registered this week. Recent gains in the virtual currency are part of a broader bull run that began last month after US-based online payments company PayPal allowed its customers to use Bitcoin on its network. It was last seen trading higher by over $800 to $18,173.70 on November 29, 2020. (Also Read: Bitcoin Hits $19,000 For First Time In Three Years, Eyes All-Time High)

Most other cryptocurrencies followed suit. Among major peers, Ethereum (ETH) traded 5.11 per cent higher at $556.16, XRP was up 6.83 per cent at $0.62688 and Cardano (ADA) up 0.24 per cent at $0.169106.

Bitcoin has surged exponentially since entering a four-digit value for the first time in 2013. It has rallied more than 130 so far this year, fueled by demand for riskier assets. (Also Read: Bitcoiners Who Missed Rally Express Relief And Regret)

The cryptocurrency’s perceived quality as a hedge against inflation and expectations of mainstream acceptance lured institutional and retail demand.

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Bitcoin’s 2020 rally has drawn momentum from strong appetite for riskier assets following unprecedented government and central bank stimulus measures to combat impact of the COVID-19 pandemic, and its reputation for being inflation-proof.

Major central banks around the globe are exploring whether to allow the issuance of digital currencies. A bitcoin, similar to any other real world currency, is the equivalent of cash, but in electronic form. 

Like a banknote or coin, it gives its holder a direct claim on the central bank, bypassing commercial banks and offering a greater level of security as a central bank can never run out of the currency it issues.



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