According to Coinbase data, Bitcoin, the cryptocurrency with the highest market capitalization, broke through the resistance level above $12,000 in the early hours of Tuesday morning, setting a high point in the past 13 months.

The data also shows that the price of Bitcoin has soared by 70% since 2020. If you start from the low point after the plunge in March, the price of Bitcoin has soared three times.

The mainstream media Reuters mentioned in its report on the price of Bitcoin on Monday that “the low interest rates of global central banks and the huge bond purchase program have stimulated demand for Bitcoin as a cryptocurrency. Some investors believe that due to its limited supply Bitcoin can hedge against inflation.”

The current price of Bitcoin is very close to the high near the end of June last year near 14,000 US dollars, but it is still a long way from the historical high near 20,000 US dollars in December 2017. After breaking through $12,000, Bitcoin’s next resistance level will be above $13,000.

The price of gold has risen along with Bitcoin. The price of gold has recovered from last week’s sharp drop to US$1991 per ounce. According to an earlier report by “Bitpush”, Bloomberg believes that the correlation between Bitcoin and gold is strengthening, and the stable price of Bitcoin will be 6 times that of gold. This year will also be a crucial year for the transition from Bitcoin to digital gold.

Anthony Pompliano, one of Morgan Creek Digital’s co-founders, believes that by the end of 2029, the market value of Bitcoin will exceed that of gold. The current market value of Bitcoin is currently 227 billion U.S. dollars, while the market value of gold is about 9 trillion U.S. dollars, which is about 40 times that of Bitcoin.

At present, the fundamentals of Bitcoin are still bullish as a whole. The hash rate of the Bitcoin blockchain network has just reached 129 TH/s, setting a record high. The increase in the hash rate indicates that crypto miners are in favor of this asset, and because they believe that it will continue to rise, they invest more equipment for Bitcoin mining.