On the morning of this Wednesday, November 18th, bitcoin surpassed the $18,500 dollar mark, being the new high for 2020. The last time bitcoin registered this value, in December 2017, shortly before reaching the $20,000, a historic all time high.

One of the reasons for this increase was the entry of large institutional investors in the crypto universe. In September, MicroStrategy announced the purchase of 16,000 bitcoins, investing $425 million. Another company that invested in cryptocurrency was the payment company Square, in the announcement made by its co-founder Jack Dorsey, the purchase of $50 million in bitcoin was confirmed.

PayPal, a major digital payment company, is another institution that has helped move the crypto landscape, with the announcement that its customers can buy, sell and maintain their bitcoin and other assets through their accounts.

Another reason that may have contributed to this increase was the Bitcoin Halving, which occurred in May this year, since this event reduced the generation of new coins into the market, resulting in increased demand and ended driving the price up.

Some Bitcoin analytics experts say it could rise further and reach $22,000. Lookintobitcoin.com analyst and creator Philip Swift has put forward four reasons for believing that bitcoin will reach that value.

The first reason is the increase in “HODLers”, meaning that since bitcoin price reduction in March, there has been a significant growth in the number of people and companies that buy and hold Bitcoin for a long time. This act could show that investors are looking forward to a broad recovery of Bitcoin in the long run.

The second reason is neutral funding rates. The cryptocurrency market uses financing rates as a mechanism to balance itself, so when the bitcoin price rises, financing rates can have a significant increase. The average funding rate is around 0.01% for Bitcoin's perpetual futures contracts. In the past few months, that rate has remained the same and sometimes even below that. But what does that mean? It means that the market is not overheated and that between purchases and sales there is a balance.

The second to last reason is that Bitcoin reserves are falling, meaning the outflow of Bitcoin is exceeding the amount of new bitcoins issued. And that means that investors are planning to keep their bitcoins for longer periods.

And finally, large institutions are increasingly accumulating Bitcoin, since the cryptocurrency has been recovering consistently since the beginning of the year. Thus, throughout the year 2020, Bitcoin became a very attractive store of value for several institutions.

Will analysts' expectations come to fruition?