Despite the Covid-19 pandemic, bitcoin has resisted economic shocks and strengthened its value in the last quarter of 2020.
A similar bull run was experienced in 2018 when bitcoin closed the $20,000 mark. The rise of bitcoin past the $17,000 saw its market capitalization to over $315 billion, just a small percentage shy of its $335 billion record.
Since March 2020, when its price crashed 50%, Bitcoin has surged by more than 330%. Alternative coins are also strengthening alongside BTC with Ethereum trading at $465. Other gainers include Ripple, Litecoin, BTC Gold, Tether, and Dogecoin.
Despite the strong performance of the BTC, which is highly fueled by North American buyers, exchange trading volumes remain relatively unimpressive. The price of BTC/USD monthly volume at Coinbase, one of the leading exchanges, has remained stagnant since June.
Many analysts view bitcoin’s surge as a pump and dump scenario following Citibank’s announcement that bitcoin could gain value could pass the $300K mark by December 2021.