For the first time since 2017, Bitcoin (BTC) has smashed through the $20,000 barrier. The bitcoin price, hitting $20,440 on the Binance exchange before falling back slightly, is up around 200% over the last 12 months as governments ramp up spending in the wake of coronavirus lockdowns, investors look to bitcoin as a hedge against inflation, and institutional interest in bitcoin rises.
Bitcoin investors, who have cheered the bitcoin price rise this year, are feeling increasingly bullish going into 2021—with many predicting the price will continue to climb.
Bitcoin’s surge over $20,000 comes after a Reuters report claiming fund manager Ruffer Investment Management has shifted around $675 million of its clients’ fortunes into bitcoin. Earlier reports had suggested the London-based firm, which manages around $27 billion worth of assets, had allocated a far smaller sum to bitcoin.
“Compared to 2017 when demand came from the retail market, this will eventually happen again, of course, the current demand is coming from an institutional level completely flying under the radar for many people and it looks set to continue through 2021,” Scott added.
What does this mean for Bitcoin (BTC)?
This simply means that fund managers can not ignore Bitcoin, since the price has reach and broke back above $20,000 this will peak interest in fund manager which will cause a economic shift into cryptocurrencies like Bitcoin, Ethereum (ETH) and XRP.