Bitcoin’s price rose 6% to surpass $20,000 for the first time on Wednesday, lifted by growing mainstream acceptance. Grayscale Bitcoin Trust (GBTC) and other Bitcoin stocks rallied.
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The price of the cryptocurrency stood at around $20,500 in morning trading, just off an intraday peak of around $20,700. In 2017, during the digital coin’s last peak, Bitcoin hovered around $19,000.
The milestone comes a week after Massachusetts Mutual Life Insurance purchased $100 million in Bitcoin for its general investment fund.
While a relatively small amount, JPMorgan analysts on Friday noted it marks Bitcoin’s spreading to more mainstream institutional investors like insurance firms and pension funds.
“One can see the potential demand that could arise over the coming years as other insurance companies and pension funds follow MassMutual’s example,” JPMorgan said.
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In recent months, payment companies have shown more interest in the cryptocurrency, becoming bigger Bitcoin stock plays.
Earlier this month, Visa (V) partnered with the cryptocurrency-focused finance company BlockFi to offer a credit card that lets users earn money back in the form of Bitcoin. The credit-card giant also offers a Bitcoin rewards debit card in collaboration with crypto startup Fold.
PayPal (PYPL) is also allowing users to buy and sell cryptocurrency from their accounts. JPMorgan Chase‘s (JPM) own digital currency has been put to commercial use.
Square (SQ) has also allowed users of its Cash App to make automatic recurring purchases of Bitcoin. And in October, the mobile payment leader bought $50 million in Bitcoin, saying it “has the potential to be a more ubiquitous currency in the future.”
More investors have used Bitcoin as a safe-haven of sorts, as currencies elsewhere wobble.
The dollar has wavered on discussions in Washington over more stimulus, which has pushed interest rates and returns on government debt lower. Trade tensions with China have also added uncertainty.
Grayscale Bitcoin Trust jumped 9.4% to 25.45 on the stock market today. Among other Bitcoin stocks, Square added 0.6% and PayPal gained 1.9%.
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