Cryptocurrency news

Bitcoin has hit a new all-time high

On December 1, Bitcoin’s price has finally hit a new all-time high over $19,892 after nearly three years. We all remember the dominant cryptocurrency declined on Thanksgiving; however, Bitcoin price has managed to recover during the weekend. Bitcoin easily surpassed the $19,000 level on Monday and hit a record.

Three key trends fueled Bitcoin’s expansion from sub-$3,600 in March to more than $19,892, which are

  • The increase in institutional demand.
  • Lower selling pressure
  • The resilience of Bitcoin during 2020.

According to on-chain data, the world’s largest cryptocurrency demand from institutions has been rapidly boosting.

Significantly, Grayscale hit all-time high net inflows during November, while the CME Bitcoin futures market witnessed its open interest rise close to $1 billion.

Grayscale announced that more institutions invested in cryptocurrencies during the third quarter of 2020 than ever before. Significantly, the Grayscale Bitcoin Trust is the first point of entry for most institutions to obtain exposure to dominant cryptocurrency.

It has to be mentioned that in the U.S., there is no ETF for Bitcoin and other leading cryptocurrency. Therefore, the Grayscale Bitcoin Trust is the closes investment vehicle to an exchange-traded fund in the U.S. market.

Furthermore, MicroStrategy bought $450 million worth of Bitcoin throughout August, adopting Bitcoin as its primary treasury asset, which was expected to trigger the current wave of institutional demand for the digital store of value.

Related Post

Bitcoin has outperformed gold in 2020

Significantly, this was accompanied during the summer by high-profile allocations to BTC  from Square, Paul Tudor Jones, and Stanley Druckenmiller, which further fueled the positive market sentiment.

Druckenmiller revealed in November that the world’s largest cryptocurrency is likely here to stay as it has significantly outperformed gold in 2020.

According to on-chain data, November also witnessed low selling pressure from whales, six months after halving. This suggests that Bitcoin’s amount to exchanges from high-net-worth investors has declined during the month.

Furthermore, Ki-Young Ju, CryptoQuant CEP pinpointed the Exchange Whale Ratio as a sign for long-term bullish market sentiment.

The low selling pressure on BTC  helped sustain its rally during the month, eventually allowing Bitcoin to hit a record high.

Additionally, JPMorgan announced on June 13 that BTC’s recovery from the March crash showed it had staying power.

Furthermore, the remarkable performance over the past decade and Bitcoin’s strong momentum since falling under $3,600 across major exchanges in March showed BTC’s resilience and long-term potential.

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