Updated; The price of the world’s most popular digital currency on Wednesday surpassed the $20,000 for the first time in history. On Thursday, Bitcoin rallied 14% to hit a new record high of $22,322.
According to several analysts interviewed by global media houses, the rally is driven by increased optimism that a covid-19 stimulus package has pushed investors to seek a non-central bank-dilutable store of wealth even as governments look to offset the damage caused by the virus.
Furthermore, a number of global institutional investors have jumped into the train and are now treating Bitcoin as an alternative asset class.
Ray Dalio Changes mind on Bitcoin
Just last week, Ray Dalio, the founder of World’s largest hedge fund, Bridgewater Associates, said Bitcoin “could serve as a diversifier to gold.”
“I think that bitcoin (and some other digital currencies) have over the last ten years established themselves as interesting gold-like asset alternatives,” he said on Reddit.