Bitcoin’s (BTC) stalled rally picked up the pace on Thursday, with prices reaching three-year highs above $16,000.
- The world's top cryptocurrency by market capitalization clocked a high of $16,157 at 10:12 UTC, a price point last seen on Jan. 6, 2018.
- The move ended a week of consolidation in the range of $14,000 to $16,000.
- Bitcoin is now up 123% on a year-to-date basis and has gained nearly 50% so far this quarter, according to CoinDesk 20 data.
- With the U.S. election in the rearview mirror, projected President-elect Joe Biden's stance could have an influence on fiscal policy over the next four years, which could, in turn, affect inflation, against which bitcoin is touted as a hedge.
- "Against the backdrop of stimulus from the Federal Reserve, we expect investors holding cash to continue to allocate to bitcoin," said Kyle Davies, co-founder of Three Arrows Capital.
- "The interest so far in 2020 has been primarily from institutions and we could see more retail participation when bitcoin breaks its previous all-time highs of $20,000," Davies added.
- The cryptocurrency has recently received validation from several public companies and prominent investors as a store of value asset and is facing a supply crunch due to increased institutional participation.
- U.S. billionaire investor Stanley Druckenmiller disclosed on Monday a bitcoin position and said bitcoin will outperform gold in the long run.
- Analysts also told CoinDesk the bitcoin price may consolidate for a short period before moving toward $20,000 in December.
- Other top cryptocurrencies were also in the green with ether and litecoin posting gains of between 1%-2% and OMG rising 8% on the day, according to data by CoinDesk 20.
Zack Voell and Nikhilesh De contributed reporting.