Surprise! Bitcoin is back. Three reasons why this time is different

ANALYSIS, FINANCE, TECHNOLOGY
Surprise! Bitcoin is back. Three reasons why this time is different
JASON POTTS AND ELLIE RENNIE
DECEMBER 7, 2020

BITCOIN PRICE CHART FROM TRADINGVIEW AS OF MAY 23, 2020. SOURCE: UNSPLASH/NICK CHONG.

Bitcoin is back.

Three years after the bubble that inflated its value from US$5,000 to US$20,000 in less than three months burst in spectacular fashion, plunging more than 80%, the cryptocurrency is again on the verge of a record high.

In recent days it has been trading above US$19,000, up from US$10,000 in October and US$5,900 in March. The price of Ethereum, the second-largest cryptocurrency by market value, has also surged over the past few months, up from less than US$250 in July to about US$600.

There are wild reports that by the end of 2021 Bitcoin could surge to US$100,000, or even US$318,000.