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.
Zack Voell and Nikhilesh De contributed reporting.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.