Analysts at Vancouver, Canada-based Canaccord Genuity are bullish on bitcoin, predicting that the leading cryptocurrency could recover losses and hit its all-time high of $20,000 by March 2021.

In a research note sent to clients late last week, analysts explained that “Bitcoin has started to form the spring 2019 bottom we began mentioning last year, although a close look at the chart suggests the recovery may be slightly ahead of itself.”

Looking ahead, they said, if bitcoin were to continue following the same trend, the implication is it theoretically could reach $20,000 in two years. 

The analysts are basing their optimistic forecast on key data that indicate an increase in demand. They noted that the average daily estimated transaction value rose for the second consecutive month to $801 million in the beginning of May from $743 in April and $521 million in March. This has been the highest level since November 2018, they said.

The analyst pointed out that in February, the number of confirmed transactions per day rose 387,000, up from 366,000 in April. The average bitcoin transactions were 185,000 per day in March.

Bitcoin (BTC) soared over the weekend, hitting a high of $7,588 on Sunday -- a level last seen on Aug. 2, 2018. It extended its gains during trading on Monday, surpassing 7,900, rising 16 percent in the to reach a high not seen in more than nine months.

Investment banking and wealth management company Canaccord believes that bitcoin’s recovery is the result of a few possible recent catalysts. The analysts point to Fidelity’s continued push into the space and explained that after the asset management giant launched Fidelity Digital Assets last October and a custody service in March, numerous reports suggest the launch of an institutional digital assets trading business within the next few weeks. They also noted that Fidelity’s survey of 411 U.S. institutional investors found that 40 percent of respondents are open to owning digital assets within the next five years.

Another factor cited is Grayscale’s “Drop Gold” advertising campaign, which hit airwaves recently and targets a digitally native investor base that may prefer bitcoin to gold as a non-government store of value investment. The analyst also said several corporate crypto initiatives from the likes of Facebook, Nike, and others gaining attention in the media.