This year has seen the cryptocurrency post massive gains compared to 2020, and has spiked by more than 1,000 percent over the past 12 months.
Several other cryptocurrencies, including ethereum and dogecoin, have experienced huge price increases over recent months and are edging closer to their all-time highs.
Simon Peters, a market analyst at eToro, told The Independent: “Bitcoin’s price has surged once again thanks to a number of factors, including new demand from institutional investors and wealth managers offering cryptoasset exposure to clients.
“Meanwhile a decline in on-exchange reserves is reducing supply as more investors move the currency to their own wallets.”
Bitcoin has more than doubled in price already this year with it quickly being accepted as an investment and means of payment, and as investors seek high-yielding assets amid low interest rates.
Major global firms including Mastercard, Tesla and BNY Mellon are among several to have recently embraced or invested in cryptocurrencies.
Nick Jones, CEO and co-founder at cryptocurrency wallet Zumo, told Bloomberg: “It’s the evolution of an industry that used to sit on the periphery.
“It really blurs the lines between crypto and more traditional financial institutions.”
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