Bitcoin rallied Tuesday for the second consecutive day, gaining $1,500 to approach an all-time high in a market that is now ready to take on risk.
In late European trading, the virtual currency was worth $17,502 and was headed towards its record of $19,041 reached in late 2017.
Forex.com analyst Fawad Razaqzada said “There has been strong appetite for all risk assets, including cryptos, in the wake of extraordinary government and central bank stimulus measures to combat the negative impact of the pandemic.”
The coronavirus has forced officials to support financial markets with cash and loan guarantees to ward off an economic collapse, attenuating the level of risk and helping stock markets in the United States to set new records on Monday.
Bitcoin was created in 2008 by the pseudonymous Satoshi Nakamoto, and marketed as an alternative to traditional currencies.
Unregulated by any central bank, it was sold as an attractive option for investors with an appetite for the exotic — and criminals also appreciate its under-the-radar appeal.
Michael Hewson, an analyst at CMC Markets, felt “the rally has been driven largely by an investment community that appears more comfortable buying cryptocurrencies.”
Bitcoin’s most recent upward trend coincided with an announcement by online payment system Paypal on October 21 that it would allow users to buy and sell using bitcoin as well as other cryptocurrencies such as Ethereum and Litecoin.