Bitcoin made a dramatic rally this Monday and reached an all-time high. This comes after the rapid decline from last week with many investors deciding to cash in on their profits. The swing proved to influence most of the crypto markets and the likes of Ethereum and Ripple have followed suit. The previous high was in December of 2017 and it looks as if the giant of the crypto industry is set to break the $20000 mark.
The price of Bitcoin has been on a steady incline for the majority of the year and hit breaking point last week as many large scale investors looked to cash in on their profits. The drop illustrated just how volatile the crypto market can be and resulted in a decline of 13% in Bitcoin’s value. Since then, the tremendous rally that occurred yesterday has seen the value increase back to an all-time high. Since the beginning of the year, Bitcoin has managed to more than double its value. This could be largely attributed to the financial meltdown due to the COVID-19 pandemic, allowing investors to seek alternatives to the dwindling prices on most stock markets.
The rally of the past week was mainly due to large institutional investors from North America. John Todaro, director of institutional research at TradeBlock said, ‘You could look at the timing of the rally, which coincided with typical U.S. market open hours,’. The activity of institutional investors has certainly picked up over the past year and this gives motivation to analysts that the price surge will be far more sustainable than the peak in 2017. The concept of Bitcoin upending the traditional financial world seems to be gaining momentum as more and more investors are drawn to the cryptocurrency.
Ethereum also managed to achieve the parabolic rally on Monday with a 19.5% value increase over the weekend following the disastrous week before. This rally has been aided by the release of Ethereum 2.0 today and analysts expect the bullish trend to continue. Ripple also followed suit with a 24.5% increase from the low observed last week, this has provided the cryptocurrency with a 268.42% increase in value for this year to date. All the developments allow for an interesting week to come for the crypto market.