Bitcoin price hits $20,000, and Bank of America notes the growing popularity of Bitcoin among investors

Bitcoin price hits $20,000 for the first time in history

The price of Bitcoin has reached $20,000 for the first time in history on December 16. The historic milestone comes just over two weeks after breaking its previous all-time high. We congratulate all hodlers with this event!

This rally is different from 2017’s due to several reasons that could help BTC surge even higher. These include growing institutional demand, the increasing perception among investors that BTC is a store of value, and stronger network fundamentals.

Bank of America notes the growing popularity of Bitcoin among investors

A Bank of America survey of portfolio managers suggests that investors became less worried about the impact of the pandemic on the global economy. The study involved 217 managers working with assets totalling $576 billion.

According to the survey, in the last month of the year, only 52% of managers named the purchase of high-tech stocks as the hottest trading idea. In September, there were 80% of respondents who share this point of view. At the same time, the popularity of short selling in US currency and the purchase of BTC is increasing.

“Funds investing in bitcoin have become one of the most popular bets of the millennial generation, and it was the growth in popularity and the limited supply that drove the price up,” noted Alexey Debelov, partner at FP Wealth Solutions.

According to the expert, the predictability of the crypto market is zero, and the value of bitcoin can “both grow tenfold in the wake of the new tulip mania, and collapse to zero if state regulators introduce draconian restrictions.”