The latest data from Coinmetrics shows that the Bitcoin cumulative transfer value has hit more than 3.5 trillion. The number of bitcoin processed on a single day reached its highest value at the beginning of 2021, as more people display interest in the cryptocurrency.
Bitcoin Bull Run in the Past Year
In December 2020, bitcoin had about 330,000 daily transactions and hit around 400,000 at the beginning of January 2021. It is greater than other cryptocurrencies’ transaction operations simultaneously but substantially less than their competitor, Ethereum: more than 1.1 million times a day is processed for the particular currency.
In recent months, Bitcoin has soared to almost $60,000 as investors have raced to purchase cryptocurrencies. Due to the high rate of crypto adoption over the past year, Bitcoin, particularly the accumulated transfer value, increased considerably.
The combined value of the 18.6 million Bitcoin tokens in circulation last month first stood at $1 trillion—doubles the $500 billion it began in 2021 and well beyond its peak in late 2017. The rally has resulted in Bitcoin piling into the market a combination of Wall Street institutional adoption, corporate interest, and retail traders — some suggesting they could have a long way to go.
Several high-profile investors have assisted in Bitcoin’s bullrun by naming it to protect them against inflation as the result of record government printing following coronavirus-induced lockdowns. The world’s central banks promised to keep interest rates close to zero to promote expenditure.
Interest in Bitcoin has Increased Over the Years
PayPal’s news allowed cryptocurrencies to be purchased and sold, and the MicroStrategy announcement that they would invest in Bitcoin and make this their principal reservation asset ignited interest in Bitcoin.
Square’s Bitcoin announcement also pulled its weight for crypto adoption as the company purchased $50 million in Bitcoin in October. Other institutions have joined the Bitcoin crowd, with Fintech group Mode being the first UK publicly-traded firm to buy a large amount of Bitcoin as part of its treasury investment strategy.
Apart from institutions, prominent conventional business veterans have also started to look into Bitcoin, with billionaire hedge fund manager Paul Tudor Jones advocating for the digital asset earlier this year, and recently said that digital currency would be a very popular commodity in the next 20 years.
Last month, Stanley Druckenmiller, another billionaire, announced that he still invests in Bitcoin, but only in his gold investment. He warned that Bitcoin could be an asset class and that Bitcoin would probably perform better since it’s more liquid and has more beta.
Although Bitcoin has racked up nearly 500% gains in the previous 12 months, UK asset manager Ruffer has just predicted that conventional financial institutions are embracing Bitcoin—called its entry into the Bitcoin market “early” last year.