Bitcoin price hits $20,000 for the first time in history

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The price of Bitcoin (BTC) has reached $20,000 for the first time in history on Dec. 16. The historic milestone comes just over two weeks after breaking its previous all-time high.

BTC/USD weekly chart. Source: Tradingview

At the same time, this rally is different from 2017’s due to several reasons that could help BTC soar even higher. These include growing institutional demand, the increasing perception among investors that BTC is a store of value, and stronger network fundamentals.

Institutional demand is fueling the Bitcoin rally

In December 2017, data suggested that retail and mainstream investors were behind the Bitcoin rally. At the time, CME BTC futures had just launched and there was a lack of institutional investment vehicles.

As such, the rally was mostly fueled by retail investors, which came to an abrupt stop after a strong whale-induced sell-off.