A man talks on a mobile phone in a shop displaying a bitcoin sign during the opening ceremony of the first bitcoin retail shop in Hong Kong on February 28, 2014. Bitcoin was invented in the wake of the global financial crisis by a mysterious computer guru using the pseudonym Satoshi Nakamoto and unlike other currencies, it does not have the backing of a central bank or government. AFP PHOTO / Philippe Lopez (Photo credit should read PHILIPPE LOPEZ/AFP/Getty Images) 
“The rally is a part of a broader appeal for risky assets as optimism grows that the coronavirus impact might be limited to the first quarter and on optimism that China will play nice with the U.S. on phase-two trade talks,” said Ed Moya, senior market analyst at Oanda.
Cryptocurrencies have been on an upward trend all year, with some analysts and digital-asset enthusiasts suggesting they’ve benefited as safe-haven plays amid ongoing geopolitical concerns around the globe.
“There’s certainly a narrative in the investment community that Bitcoin is solidifying its place as a store of value, a flight to safety, inflation hedge,” Michael Sonnenshein, managing director at Grayscale Investments, said in an interview at Bloomberg’s New York headquarters. If history is any guide, the upcoming halving, which is set to happen in May, could also have an impact on the token’s price, he said.
Some Bitcoin enthusiasts are predicting further gains. Fundstrat Global Advisors’ Rob Sluymer, for one, sees it rising through the second quarter this year to trade in a range of $10,000 to $11,000. Mike McGlone, an analyst with Bloomberg Intelligence, says the 2020 outlook for the largest digital token remains favorable. “Similar to gold, positive fundamentals should extend Bitcoin’s price appreciation,” he wrote in a Feb. 5 note.
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Bitcoin peaked at almost $20,000 in December 2017 and finished that year up about 1,400% as the cryptocurrency burst into the mainstream. It plunged 74% the next year, before rebounding almost 100% in 2019.