Bitcoin has fired beyond the $27,000 mark, meaning the world’s number one cryptocurrency is now bigger than it has ever been.
Bitcoin Is Moving Faster, Now
The currency has largely been trading for around $23,000 through most of the holiday season, and now, post-Christmas, the asset is on a tear through the financial arena and has added another $4,000 to its constantly growing price. The currency appears to be on a serious roll to the point that we all must wonder what made us make such a big deal out of $19,000 three years ago in 2017. It’s present price marks a ten percent gain in the last few days alone.
Many analysts are now wondering if perhaps $30,000 is next for the currency before the year is out. It’s been a crazy year in many ways, but for bitcoin, things seem to just be getting started. Thus far, the total value for all the bitcoins in circulation is more than half a trillion dollars.
Thomas Kuhn – head of research and trading with Australian crypto exchange Mine Digital – explained in a recent interview:
I think that the move here is extraordinary and could be viewed alternatively as being the only game in town during this period – with most of traditional finance away until mid to late January – or a bid to achieve the $500 billion market cap. I would have a hard time bidding in here, but if the timeline is longer than 12 months, it’s all value up to $1 trillion!
While institutions have played a serious roll throughout 2020, this recent surge during the Christmas holiday appears to have more to do with retailers, as traditional markets have been shut off. Marc Bernegger – a member of the Board of Crypto Finance Group – mentioned:
The massive price increase of bitcoin during Christmas is mainly driven by retail traders as traditional markets are closed. I would not be surprised to see a healthy correction when these markets open on Monday. Compared to massive short-term price gains of bitcoin in the past, there are far more professional investors involved in the space today which will result in faster price corrections and decrease long term volatility.
Retailers do not always possess the strength of institutional players. They were at the heart of the rally three years ago, but while things looked good at first, it didn’t take long for bitcoin to lose much of its stamina in the following months, meaning the asset could potentially drop a bit in the comings weeks.
We’re Just Getting Started
Still, other analysts choose to believe bitcoin is still advancing to the top. Crypto Compare chief exec Charles Hayter says:
There is no end in sight for money printing to stop which is propelling the bitcoin narrative. Funds are tumbling their portfolios into bitcoin and the herd is just starting to move.