Bitcoin Price Jumped From $3,000 to $4,000 in Just 60 Days: Reasons & Trends
Discover the number of days it took Bitcoin to reach different price levels.
Since 2012, Bitcoin price has demonstrated an exponential increase in value amidst a rapid rise in global adoption, growing demand from institutional investors, and significant maturation of international markets.
A well-performing asset
A well-known cryptocurrency researcher known as “Jack Sparrow” recently released his findings on how long it took Bitcoin to reach certain price benchmarks.
As can be seen from the table above, Bitcoin started at nearly $0 and rallied the $2,000 level in a matter of 1,789 days, which is the equivalent of seven years.
However, the same level of increases, from $2,000 to $4,000, only took 85 days.
Optimism from the large institutions
While Bitcoin was marginalized and more-than-often associated with black markets and illegal trade, it entered a new era in 2017 that saw many of the largest multi-billion dollar financial institutions including Goldman Sachs, JPMorgan and Fidelity Investments express their optimism towards the king of cryptocurrencies.
Indeed, Goldman Sachs has encouraged its portfolio managers to invest in Bitcoin, and Fidelity has been exploring cryptocurrencies through mining equipment.
The $140 bln market is now too big to be ignored by these large institutions.
Still considered a bubble
On the other hand, the historic run for cryptocurrency has prompted observers both in the tech world and Wall Street to talk about the cryptocurrency being a "bubble." Its abrupt increase in price may have exceeded its intrinsic value, as in the view of traditional investor Peter Schiff.
However, Bitcoin has been able to demonstrate an exponential increase in value by being the most accepted cryptocurrency and by creating global acceptance as a safe asset and long-term investment.
Extensive media coverage
This confidence has led mainstream media such as Bloomberg and CNBC to cover Bitcoin extensively.
During its extraordinary rally, the currency also established an international user base and significantly improved its global adoption.
Kay Van-Petersen, Saxo Bank analyst, believes:
“This is not a fad, cryptocurrencies are here to stay. There will emerge two to three main ones. Bitcoin will be one of those. And the reason is the first-mover advantage, the scale and the pioneering.”
Bitcoin may only just be having its greatest increase yet.