Recently, the foremost cryptocurrency, Bitcoin, is seen surging consistently to embark on a historical journey to create a magnificent imprint in the modern financial world. This year, 2020, was filled with unprecedented events due to the global turmoil caused by the Covid-19 pandemic. However, Bitcoin witnessed a surging demand resulting in surpassing its previous resistance. The price of Bitcoin is escalating due to the continuous demand due to increased adoption.
This month, December, has been the most eventful year for Bitcoin’s performance in the mainstream. What seemed like a Bitcoin hype has reinforced the fundamentals of the currency in terms of adaptability and a store-house of value. Therefore, it blasted the $27,000 level for the first time ever on the Bitstamp exchange at 6:01 UTC. It is currently rallying at $27,700 at the time of this publication—the Bitcoin graph represents a concave upward forecasting future momentum in terms of the price rise.
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Besides Institutional foray, reasons for the Bitcoin price momentum.
This Christmas has been fruitful primarily for the crypto and blockchain industry. The crypto bandwagon witnessed one of the greatest milestones of the largest digital virtual currency. This year gained immense attraction and appreciation from traditional financial institutions who actively pounced on the crypto meal. Institutions like Mass Mutual, Black Rock, Ruffer Investment, and PayPal are actively engaged in the crypto space.
However, Adam Back, Head of Blockstream, took to Twitter to express gist about the Bitcoin price momentum on a Christmas day. On December 25th, when Bitcoin almost hit the $25,000 highs, Adam Back expressed how the Bitcoin catalysts involved retail investors instead of institutional players. He further elucidated that the retail investors were the only keyboard players on Christmas day.
Nevertheless, the Bitcoin price momentum initiation was by the institutional investors investing substantial funds in hoarding Bitcoins. The other possible reason for the retail demand could be due to the FOMO of Bitcoin. Moreover, currently, the Bitcoin space constitutes three types of people. Firstly the ones who sold Bitcoin at $15,000. Secondly, the ones who are yet holding Bitcoin without a well-defined exit strategy, and thirdly, the ones who do not hold any Bitcoins. In either case, there are apprehensions about the future possibilities of Bitcoin.
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