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Bitcoin Tops $20,000 For the First Time

Published 12/16/2020, 08:46 AM
Updated 12/16/2020, 08:54 AM
© Reuters

© Reuters

By Geoffrey Smith 

Investing.com -- The price of Bitcoin topped $20,000 for the first time on Wednesday, minutes after a surprisingly weak U.S. retail sales report encouraged further speculation on aggressive reflationary policies from the new administration and Federal Reserve next year. 

By 8:48 AM ET (1348 GMT), the world's most valuable digital currency was trading at $20,283.49 on the Bitfinex exchange, a gain of 4.8% on the day. 

Bitcoin had been steady just below the $20,000 level for most of the last three weeks, as the progress of vaccines to treat Covid-19 through the authorization process encouraged belief that a recovery, and higher returns on fiat currencies, were now pre-programmed for 2021. However, the spread of the coronavirus through the U.S. and Europe has led to wider and stricter lockdowns, gradually raising the pressure for more stimulus - something that investors in crypto prefer to style as currency debasement.

The move happened after the Commerce Department said U.S. retail sales fell by 1.1% in November, their first decline in six months and the most concrete sign yet that the ongoing weakness of the labor market is eating into household spending.  Initial jobless claims rose steeply last week to 853,000, their highest in three months, sparking fears that net job growth may have ground to a halt.

In addition to the economic data, the U.S. Treasury also published a report accusing Switzerland and Vietnam of being currency manipulators, something that could be seen as a prelude to official intervention to weaken the dollar. Although it has already backed off substantially from its peak earlier in the year, analysts say that the dollar's fundamentals - specifically its massive fiscal and current account deficits - would easily justify a further drop.

Latest comments

I can’t believe how many news articles are reporting this is the first time that bitcoin Has been over 20,000 it was over 20,000 December 17, 2017 I believe it went to 20,083 And before you start saying that I am wrong and this is the first time here’s an article from back then https://www.coindesk.com/a-year-ago-today-bitcoins-price-was-at-a-record-20k
Nerd investors went to far. Now Bitcoin will always be deemed unstable to volatile to be used as payment option.
More lecture here... wanna start investing but don't know where to start.
More lecture here... wanna start investing but don't know where to start.
Well start studying and digging about what fed did and is up to, what the mid-upper class people’s lifestyle would be like in 5 years. We see tesla, apple, and amazon grow but not intel. Think about current and new goverment policies/deals on renewable energy. Thunk about the big picture.
Bitcoin = Fool’s Gold!
I will remind my kids when they are my age; BTC is priceless today and will be priceless then. 🤑🧠
I want to trade please connect with me
yes r u in uae u want to trade
there are markets for that.
bitcoin will see 30000
it's priceless 🤠
This isn’t the first time bitcoin went over $20,000
What BTC are you trading? 😴
On Dec. 17, 2017 I know because I had bitcoin back then and I believe it Reached 20,083 that day
https://www.coindesk.com/a-year-ago-today-bitcoins-price-was-at-a-record-20k
what is bitcoin? never heard of it
It's a coin made of German BitBurger beer.
pokemon coins, also can be use as screwdriver bits. your welcome
I tell all my stores to not accept Bitcoin anymore. To much is to much.
Bitcoin now only need and freak investment. Unstable and unusable ever as payment tool
Nerd and Freak investment
Is that so? Why have banks been purchasing Bitcoin nonstop recently then? ;)
it's digital art.
Bitcoin also went from 19000 to 3500 before. Once business go back to normal Bitcoin = 10000
Does “normal” mean that $7-8 trillion that Trump added to the national debt will disappear too?
I think somebody is sour because they shorted Bitcoin and didn't do the grand analysis including what happened after each halving, 8 and 4 years ago. Bitcoin will go waaaay Beyond this, all the way up to 100000 or even higher, before falling again to the 30-40k level and slowly continuing to climb from there till the next halving in 3,5 years.
💯💯🧠🧠
I love all the haters on here, keep hating on Bitcoin and I'll enjoy being up multiple 5 figures on my holdings. lol
PSA: It's still not money!
Time to sell this pump and dump.
There is to many nerds and freak trying to control it. Which make unusable as payment tool.
Bitcoin insanity only show that it can never be used as payment tool.
, bitcoin is a peer to peer payment system. maybe research before saying things that aren't true. many companies use Bitcoin as a payment option.
$25K BEFORE JAN 1ST
2020 or 2021
20,000 is just in low earth orbit for bitcoin. still far from destination : the moon . !
Once governments decide to go digital with the currencies i have no doubt this could go very high.
Price target for 2021: At least 100k, then falling hard again to 30-40k.
there may be 'bitcoin market crashes' however with stable coin market capital constantly increasing; they cryptocurrency market may see fluctuations yet losing 70% of its value? There is current support at $13,000 and now that looks to be $15k support. After 100K the support will be $75k and you need 40k to invest today. 👋🤑
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