Bitcoin crossed the $29,000 mark on the last day of 2020, and continues to hold above this on the first day of the new year, with its value growing four times through 2020 as more investors turned their attention towards the crypto market. At the time of writing, BITCOIN is trading at around $29,300.
The most popular cryptocurrency has risen fast after crossing the $20,000 level on 16 December 2020, gaining nearly 50% since then. Bitcoin has been trading bullish over rising interest from large investors based in the US over hopes that it could soon gain mainstream acceptance as a method of payment.
According to estimates by CoinMarketCap, the total market capitalization of BTC has exceeded $546 billion. In addition to increased interest from larger investors and corporates, the bullish moves in the Bitcoin have also been driven by a weakness in the US dollar.
The US dollar has experienced significant weakness through 2020 and is likely to continue weak in the near future as markets anticipate more fiscal stimulus for the US economy. A weaker dollar has made Bitcoin more attractive as a hedge against inflation and an alternate against gold that has also become more expensive.
Start mining bitcoin now
Start trading bitcoin now