Bitcoin rocketed to a new 2020 high of $18,737 at 3:05 p.m. UTC on the Bitstamp exchange, its highest level since Dec. 19, 2017.
The cryptocurrency is less than five percent away from its lifetime high of $19,664 that was set on Dec. 17, 2019.
In a Nov. 20 interview with Yahoo! Finance, Fundstrat's Tom Lee says that the cryptocurrency "thrives off" its network value.
The permabull claims that institutional adoption is "really taking off" in the U.S.:
We've seen a lot of interest and a lot of engagement.
This trend can also be seen across the pond. Switzerland-based cryptocurrency ETP manager 21Shares is now raking in $3 mln worth of inflows from institutional investors on a daily basis. Last year, it could not scrape this sum together in a whole year.
The halvening narrative and gold's recovery
Lee is convinced that the May halvening is also a key factor behind the ongoing uptrend because it has dramatically reduced the supply of the cryptocurrency:
It's killing it this year. It's crushing all other hedges and other classes.
Because of how scarce Bitcoin is, it is often called "digital gold." After ranging below the $18,400 resistance level, the cryptocurrency ended up smashing it by following the lead of the yellow metal. Spot gold is currently changing hands at $1,876.
Ethereum leads the rally
Whether Bitcoin maximalists want to admit it or not, the most recent Bitcoin uptick was foreshadowed by Ethereum.
Earlier today, the flagship altcoin crossed the psychological level of $500 for the first time since June 2018.
Multiple DeFi tokens are also on a roll today, with DeFi tokens such as Curve DAO Token (CRV) and SushiSwap (SUSHI) posting double-digit gains.