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Bitcoin has reached a new all-time high. On December 30, the world’s number one digital currency by market cap hit $28,700, meaning it’s just shy of reaching $29,000 and possibly even $30K.
Bitcoin Continues to Shoot Up
What does all this mean? Are we on track for a solid 2021? Will the currency be able to continue its present momentum and reach for even more bullish territory in the coming weeks? If we thought 2020 was solid for bitcoin, perhaps the next 12 months will show us something even grander.
Up to this point, it was widely believed that the bitcoin price is surging thanks to newfound support from institutions and professional traders. However, according to Paolo Ardoino – the chief technology officer of crypto exchange Bitfinex – we cannot discount retailers altogether. They are still in the mix and adding their power to the crypto industry.
While a growing institutional presence has been part of the narrative of the current bull run, we may see increased retail interest in bitcoin as a form of digital gold.
This has been a newfound attitude towards bitcoin ever since the coronavirus pandemic began striking the globe’s financial space. Many people now view BTC and other cryptocurrencies as stores of value; hedge tools that can potentially keep one’s wealth safe during times of economic strife.
However, according to Ed Moya of OANDA fame, bitcoin is likely being pushed into even stronger price regions due to the amount of regulatory pressure the crypto space is witnessing as of late. In a recent statement, he mentions:
Bitcoin mania is running wild as bearish bets against the dollar rise to the highest levels since 2011. Macro crypto traders and haters of fiat currencies remain blindly ultra-bullish and that could help bitcoin test the $30,000 level before the year ends. In the past, bitcoin would see weakness on regulatory concerns, but prices seem resilient despite the latest problems with XRP, which at one-point last week, was the world’s third-largest crypto. Coinbase, a cryptocurrency exchange, decided to suspend trading in XRP after the SEC sued Ripple for illegally selling unregistered securities worth $1.3 billion. Regulatory rears have always posed a risk for bitcoin, but for some institutional investors, the price crash with XRP was a reminder that bitcoin is best positioned to handle new regulatory restrictions.
A Huge Surge in Just One Year
It was about a year ago when BTC was only trading in the $7,000 range, but now, the world’s biggest digital asset has quadrupled in size. It is estimated that the currency has grown by roughly 270 percent in 12 months as the US dollar continues to show signs of weakness, though we are once again reminded of bitcoin’s finite supply from Jacob Skanning of crypto hedge fund ARK36, who said in an interview:
The supply side to the bitcoin market will remain tight.