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| Bitcoin's price is the highest in nearly three years |
Bitcoin rose above $ 17,000 on Tuesday, its highest level in three years after posting new highs in the past few weeks.
According to CoinDesk, Bitcoin's price has risen by more than 4% in the past 24 hours, trading at $ 17,030, and reaching its highest level since January 7, 2018.
Investors are hoping that more stimulus packages from U.S. central banks to support economies affected by the COVID-19 pandemic will increase the value of digital assets.
Industry insiders say Bitcoin's growth, which has increased by 137% since the start of the year, is driven this year by a number of factors including: government incentives related to the novel coronavirus (Covid-19) COVID-19 and concerns. Popular investors are Paul Tudor Jones and Stanley Druckmiller.
"The gap between the cryptocurrency world and traditional financial institutions is nearly closed," Charles Hayter, CEO of CryptoCompare, a data provider in the cryptocurrency market, told CNBC.
Cryptocurrency enthusiasts describe bitcoin as having similar properties to a safe-haven asset as gold, and investors flock to it a lot during the economic downturn. They say the fiscal and monetary stimuli put in place in response to the pandemic have made government currencies such as the US dollar less attractive.
Bitcoin has grown in the past few weeks after the digital payment company PayPal announced that it would use the virtual currency for purchases on its platform.
This news reinforces long-term expectations that Bitcoin and its competitors could become a more viable payment method, a previously unattainable goal.
Investors and Bitcoin enthusiasts are pinning their hopes on further clarification of the rules of cryptocurrency by global financial regulators and greater recognition of large financial firms.
It should be noted that there are no common big improvements in cryptocurrencies, and there are usually big declines followed by many experts who get lost and cannot pinpoint the clear cause of the change in trend.
Bitcoin's price was over $ 20,000 in December 2017 and was down 50% the following month.
"Bitcoin will not rise or fall for macroeconomic reasons such as quantitative easing or actual investor decisions," said David Gerrard, a cryptocurrency expert and author of a book on virtual currencies (Libra) run by Facebook. He said earlier. He added, "The market is weak and artificial. Any change in prices can be completely explained by the problems of the internal market."