Washington, December 26: Bitcoin crossed USD 25,000 mark on Friday in red hot 2020 rally, a life-time high for the cryptocurrency. The development came due to an increase in demand from institutional investors. At present, it is the world's most expensive currency. According to Bloomberg, the cryptocurrency rallied at 224 percent in 2020. Four Things to Remember About Purchasing Bitcoin.

If the same trajectory is followed, Bitcoin can hit the USD 143,000 mark in 2021. The new high for the cryptocurrency is believed to be driven by new investors who have shown interest in digital assets in view of the prevailing economic situation due to the COVID-19 pandemic. At present, a single bitcoin was valued at about US USD 23,300.

Bitcoin's capitalisation reached USD one billion in March 2013. Since then the currency witnessed two record-high spikes. However, experts consider that this year' spike is not the same as of 2017. According to them, the spike is due to some major institutional investors, who have decided to join the market. CoinPal.eu: Popular Bitcoin Exchange Service in 2020.

Despite the fact that bitcoin investors have traditionally argued that the cryptocurrency price is not linked to traditional markets, its positive correlation to traditional markets remains strong above 0.4, according to Coin Metrics. "Every little boost we are seeing since a few months has a very genuine reason behind it and most of the time it is the new funds or corporations deciding to hold a part of their balance sheet in bitcoin," Sathvik Vishwanath, CEO & Co-Founder of cryptocurrency platform Unocoin, said in a statement.

(The above story first appeared on LatestLY on Dec 26, 2020 12:20 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).