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Bitcoin price news: Is the Covid-19 pandemic driving interest in BTC?

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The historically volatile flagship crypto bitcoin has seen its value climb almost continuously in recent months. This culminated with BTC setting a record price high of £14,884 ($19,850) earlier this week.

And although this was followed by a brief slump, some experts still predict positive momentum may well continue up to Christmas.

Most analysts believe institutional investment is the main reason for the cryptocurrency’s price performance.

However, Gregory Klumov, CEO and founder of STASIS, believes the success of bitcoin and other cryptocurrencies may also be driven by the COVID-19 pandemic.

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He suggests the pandemic has accelerated the shift towards people embracing a cashless society, in turn pushing the cryptocurrency market mainstream.

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Bitcoin continues to hover around the $19,000 mark, interpreted as offering respite to take stock of the spectacular gains made in recent weeks.

Coindesk.com data states BTC is valued at £14,181 ($18,895) at 4pm GMT on Wednesday, December 2.

Marcus Swanepoel, CEO off global cryptocurrency exchange Luno, thinks this pause in BTC’s price rise may not last long.

He said: “$20,000 is evidently going to be a hard barrier to crack and has many people selling, hence aggressive sells taking place.

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“Additionally, such movements are manoeuvred by algorithms and large whale traders; they take liquidity from the market from both sides where leveraged positions get liquidated.

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“Most of the large derivative exchanges are unregulated, hence the events taking place.”

“We’re very likely to see $20,000 plus this week.

“It could end up reaching anywhere between $20,000 to $25,000 before we start to see any downside, when we’d likely see a 20 to 30 percent pullback.

“This clearly lays the path for the next leg up in bitcoin’s price cycle which could potentially see it reach $50,000 or even $100,000.”

Bitcoin’s record-breaking run has been broadly mirrored by other major cryptocurrencies, known as altcoins.

But although ethereum, ripple and bitcoin cash are also climbing in value, they remain a long way off their record highs.

Bitcoin investment was up 221 percent compared to October, while Ripple witnessed more than 1,000 percent gains.

However, bitcoin has also attracted over the years a fair number of detractors who warn against investing in the crypto.

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Peter Mallouk, president and chief investment officer of Creative Planning, has warned against putting your money into BTC during the pandemic.

He said: “You have incredible companies that we know are not going anywhere, selling for half off.

“There is no need to go over into the speculative world.”

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