As we remember, the dominant cryptocurrency, Bitcoin, tested the $17,580 low on December 11. Although some analysts are issuing bearish estimates, investors remained relatively calm. Last week’s trading may have finished at the same level where it started. However, the dominant cryptocurrency fundamentals have become even more powerful.
After declining, the world’s largest cryptocurrency witnessed excellent gains and hit all-time highs. Some analysts believe that Bitcoin will resume rising. Significantly, the options market is pricing a potential BTC rally up to between $36,000 and $50,000 in the medium term. That explains that many options traders anticipate the Bitcoin rally to continue into 2021. Moreover, a larger uptrend in early to mid-2021 would indicate that BTC repeats the post-halving trend witnessed in 2017. As we know, in 2016, BTC saw its second block reward halving, and 15 months after that, it rose to about $20,000.
Significantly, every time BTC reaches a new high, investors anticipate some form of correction. Despite slipping to break through the $24,000 resistance, the price immediately recovered from its sub- $22,000 dip on December 21.
During the past week, Bitcoin dominance resumed increasing as it rose from 64.3% to 67.3%. The Dubai-based financial advisory firm deVere Group’s $46,000 forecast for 2021 supported this progress. Moreover, the Chicago Mercantile Exchange exceeded $1.3 billion of futures contracts. It produces an indisputable sign of the expanding institutional participation in BTC markets.
This news seems to have given investors more confidence, causing BTC to hit a new $24,300 lifetime high on December 20.
Bitcoin outperformed the top-15 altcoins
The world’s largest cryptocurrency, Bitcoin, outperformed the top-15 altcoins. It increased by 7.7% on average in the past week. Furthermore, the volume from altcoins has been disappointing compared to BTC’s 50% jump.
Notably, Grayscale Investments, a Crypto fund manager, also resumed aggressively adding Bitcoin to their portfolio, which now includes $13.3 billion in BTC.
Remarkably, over the past week, 11,620 BTC were added, totaling 576,650 BTC. Hence, it was an excellent week for Grayscale Bitcoin Trust.
Furthermore, during the past seven days, the premium rose from 18% to 40%.
Additionally, data from TheTie also reveals that a recent Bitcoin price rise happened while tweets related to Bitcoin touched the highest level witnessed since December 2017. Notwithstanding the recent correction on the social activity indicator, the current level remains 10% higher than the prior month.
As Bitcoin holds above $22,500, investors are quickly regaining their confidence. At the same time, the consistent bounces back from each dip are a positive indication.