After passing the symbolic benchmark on Wednesday, bitcoin continued to rise late into the evening. According to data provider Refinitiv, it last traded at around $ 21,851.
Bitcoin (XBT) has had a tear this year and has tripled in value. It and other cryptocurrencies have been attractive to investors as the US dollar has weakened.
“It’s no surprise to us that Bitcoin has hit $ 20,000, but it is a very symbolic threshold to reach at the end of a historic year for bitcoin,” said Michael Sonnenshein, CEO of Grayscale Investments. “These are just the early days and we think there are many more runways to go.”
With the Federal Reserve expected to keep interest rates at zero for several more years, bitcoin may continue to gain new fans.
Familiar names add to bitcoin’s appeal. A top man at Black rock (BLK) has even said the cryptocurrency can replace gold, and payment giants Square (SQ) and PayPal (PYPL) have both embraced bitcoin.
“Volumes were 70% above the daily average for the year last week … indicating greater participation in this rally than has been historically the case,” said James Butterfill, investment strategist at CoinShares. “It’s worth noting that investors are starting to see bitcoin as a viable gold alternative.”