Since Monday, Bitcoin has seen a 23% increase to end the week trading just under $23,500. The cryptocurrency has enjoyed its highest weekly performance since April 2019. It was a spectacular week for bitcoin, setting record price highs four days of the past five, and reaching the current record of $24,273 on Sunday afternoon.
In the span of five years, bitcoin has only seen a larger weekly gain than the one posted on Sunday nine times before. At the start of a new trading week, CME bitcoin futures started at $23,600, over 3% higher than their closing price on Friday.
Market data shows that for 10 of the past 12 weeks, pressure for weekend buying led to CME bitcoin futures opening Sunday trading at more elevated prices than the previous Friday's close.
The cryptocurrency's sturdy weekly performance comes after the latest surge of institutional investor activity in bitcoin. Global head of equity strategy at investment firm Jefferies, Christopher Wood, has reportedly cut 5% of his gold exposure in favor of bitcoin. And chief investment officer at Guggenheim Partners, Scott Minerd, told Bloomberg that analysis shows bitcoin should be worth almost twenty times its current value, $400,000. Reportedly, Goldman Sachs was also picked to lead the Coinbase public offering on Friday.
This comes as good news to the unit, which was invented in 2008 and launched in 2009. In recent years the currency has become a good investment option for institutions and retail investors alike.
Many investors see the volatility of Bitcoin as an opportunity, and speculators are attracted to the price fluctuation in bitcoin and other virtual currencies.
Coincidentally, the number of global blockchain wallet users is increasing from year to year. Blockchain is a distributed ledger technology that helps secure cryptocurrencies such as bitcoin.
As of December 14, Wrapped Bitcoin and Bitcoin were the most expensive virtual currencies globally with a value of $19,201.62 and $19,189.45 respectively. Ethereum came in third with a price of $587.61, over thirty times cheaper than the first two currencies.
Messari data also shows that bitcoin has gained 226% year-to-date.