Currency Economy

Bitcoin Nears 2018 Post-Bubble Highs As Mainstream Adoption Drives Rally

(Benzinga) – Bitcoin’s (BTC) upward march continues unabated as the apex cryptocurrency gained 5.13% in a 24-hour period Tuesday — taking its market capitalization to $255 billion.

What Happened: At press time, Bitcoin prices hovered just below the highs not seen since June 26, 2019, when the cryptocurrency touched $13,796.49, as per CoinMarketCap data.

If Bitcoin were to breakout above the June 2019 highs, it would be at its highest since Jan. 4 2018, when it touched a high of 17,739.70.

Bitcoin touched its all-time high of $20,089 on Dec.17, 2017.

Other cryptocurrencies have followed Bitcoin’s lead with Ethereum (ETH), XRP (XRP), and Bitcoin Cash (BCH) gaining 3.4%, 1.4%, and 2.95%, respectively, at press time. Litecoin saw as much as 4.49% gain at press time.

NEM (XEM) and Neo (NEO) were outliers to trend as they fell 3.48% and 0.97%, respectively, at press time.

Why It Matters: The cryptocurrencies are rallying on the back of news of increased mainstream adoption over the recent weeks.

JPMorgan Chase & Co JPM 1.91% said Tuesday its “JPM Coin” cryptocurrency is now live, being used by a large technology company to send global payments.

Bitcoin closed above the $13,000 mark last Saturday —  for the first time since 2018.

This followed PayPal Holdings Inc PYPL 1.63% saying it would allow its users to buy, sell, and hold cryptocurrencies like Bitcoin and Ethereum in October.  

Square Inc SQ 0.69% earlier announced a $50 million investment in Bitcoin. 

Grayscale’s “Bitcoin Investor Study” on Tuesday revealed that 55% of investors in the United States are interested in purchasing Bitcoin this year, which is a 19% rise compared to last year.

The COVID-19 pandemic was cited as a reason by 63% of the respondents as being the reason spurring their interest in the cryptocurrency. 

Meanwhile, Grayscale Bitcoin Trust GBTC 8.97% has attracted cryptocurrency lender BlockFi, which has picked up 5.07% of its total shares.

Grayscale Bitcoin Trust closed 8.97% higher at $15.67 on Tuesday. 

Price Action: Bitcoin traded 5.13% higher at $13,746.81, Ethereum traded 3.4% higher at $407.37, Bitcoin Cash traded 2.95% higher at $268.43 and XRP traded 1.4% higher at $0.2525 at press time.

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