This month of December 2020 has been phenomenal for Bitcoin (BTC) as the world’s largest cryptocurrency has surged nearly 50% so far. A major part of the BTC price has come in the last four days where it moved from $23,500 to above $28,000. On Sunday, December 28, BTC hit its new all-time high of $28,288, however, it has partially retraced but still holding above $27,000 at press time.
The latest Bloomberg report suggests that Bitcoin (BTC) is on track for registering its longest monthly gains since mid-2019. The rally in December so far has outsized BTC’s previous monthly gains in October and November.
However, if you are wondering what lies ahead, there’s probably still some steam left in the BTC price rally. Analysts expect we could be seeing Bitcoin (BTC) price touching $30,000 levels. Vijay Ayyar, head of business development with crypto exchange Luno in Singapore said:
“My sense is we’re very close to a top — we could hit $30,000 though. We should definitely see a pullback, but the magnitude is probably lesser. We might only see 10% to 15% drops.”
Bitcoin has emerged as the top-performing asset class and the best hedge against the rising inflationary pressure. Massive institutional money has helped its break several resistance to clinch new highs. Interestingly, with over $500 billion in market cap, BTC has emerged as the world’s biggest financial services toppling giants like VISA (NYSE: V) and PayPal (NASDAQ: PYPL).
Interestingly, U.S. President Donald Trump approved the $900 billion stimulus package on Sunday, December 27. It means that fresh liquidity could possibly enter the market with rising retail participation.
Speaking to Bloomberg, Matt Hougan, the chief investment officer of Bitwise Asset Management said:
“What’s happening now—and it’s happening faster than anyone could ever imagine—is that Bitcoin is moving from a fringe esoteric asset to the mainstream. If it’s going mainstream, there is just so much money on the sidelines that is going to have to come in and establish a position that leaves me very bullish for 2021.”
Over the last month, we have seen that short term corrections in Bitcoin (BTC) price has met with equal and even stronger bull runs. While Bitcoin continues to hog all the limelight, Etheruem (ETH) is catching up equally fast, moving past $700 levels.
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