Bitcoin Price Approaches All-Time-Highs as Demand Surges

The price of bitcoin is undergoing a parabolic price rally. As bitcoin nears its all-time high—$19,800, reached on December 17, 2017—we took a closer look at how the current rally compares to the days leading up to its previous peak, and we believe that there are notable differences. While the 2017 bitcoin rally was driven by higher volumes, likely due to retail demand, the 2020 price rally so far has been driven by lower volume. We believe the 2020 rally is driven more by institutional allocation and that investing in bitcoin has become less speculative in nature, which indicates bitcoin’s increasing status as a store of value and suggests further potential adoption.