Historically the strongest month for Bitcoin (BTC) based on data compiled from January 2012 to June 2019, November proved pivotal for the cryptocurrency market. It recorded fresh highs and announced numerous notable partnerships, highlighting growing institutional interest in the space.
Record volumes propelling some cryptocurrencies to new highs
November saw exceptionally high trading volumes, with more than $270 billion in crypto assets exchanged, according to CryptoCompare. This surge in trading activity helped push Bitcoin past its prior peak set in 2017.
After briefly pulling back last week from levels near $20,000, BTC/USD rebounded and moved closer to its all-time high. Bloomberg’s compiled data show Bitcoin rose 8.7% on one day to $19,857.03. Over the year, the price of Bitcoin has gained more than 170%, according to the publication.
Institutional investors increasingly focused on cryptocurrencies
While the 2017 Bitcoin rally is often linked to widespread retail participation, this year’s surge appears to differ. Many analysts argue that institutional involvement played a crucial role in the recent Bitcoin rally.
Major global companies such as PayPal, Square, and MicroStrategy have shown interest in Bitcoin. Additionally, a growing range of institutional-grade financial products for cryptocurrencies—many of which did not exist in 2017—now enable institutional players to access the market more comfortably.
“Institutional investors now have numerous ways to gain exposure to crypto through regulated exchanges or instruments they are familiar with, and most of these avenues did not exist in 2017,” said Henri Arslanian, PwC’s global crypto lead, on Bloomberg.