Valuation of 278% in one year.
In the early hours of Wednesday (30) Bitcoin broke a new price record and was traded above US$28,000. The digital currency follows a strong upward trend that saw its price rise by $8,000 in just two weeks. In Brazil the digital currency is traded above R$ 150,000.
In the last 30 days alone the Bitcoin appreciated by 54%. At Christmas (25), cryptomime reached a new record and was traded for US$ 25. Curiously, in the following days the price broke new records: 26/12 (US$ 26,000) and 27/12 (US$27). The valuation of digital assets in the year is now 278%.
Bitcoin’s current rise is attributed to institutional adoption, where several companies are buying the currency as a form of protection against an impending financial crisis.
Digital currency is experiencing its fourth big boom since it was created in 2009. The last big record was in December 2017, just before it fell to a low of around $3,200.
2020 will be remembered as the year in which Bitcoin experienced Bitcoin Up app institutional investment. From 2010 to 2012, the asset was mainly used by libertarians and was considered to be a „people who mess with computers“ currency. In 2013 it reached the mainstream for the first time, and those who bought the asset by 2016 are considered pioneers.
In 2016 and 2017, when the asset broke its first price record, it was the turn of retail, ordinary people. They bought up and sold down.
Now, in 2020, the giants have arrived. It is now the big companies, investment fund managers, and even governments that are buying Bitcoin. These people do not buy uptown to sell downtown.
Bitcoin’s seasons: Messari
Bitcoin Seasons: Messari
Based on Bitcoin’s current performance and the fact that less than 0.2% of the world’s population owns the digital currency, many analyses plot an optimistic future for crypt currency.
Bloomberg said that by 2021 the asset could surpass US$1 trillion in capitalization, that would make the price of the digital asset reach US$50,000.
Citibank is even more optimistic and believes Bitcoin will exceed US$300,000 by the end of 2021.
Last week when Bitcoin was trading below 24,000, Tony Vays, a Wall Street veteran said the digital currency would be worth 28,000 by the end of the year.
The forecast happened.
Maybe by luck?
Maybe, but the analyst expects Bitcoin to be above $100,000 by 2021.
On the critical and pessimistic side there are those who say that Bitcoin’s high is completely misplaced and will even make people jump out the window.
Bitcoin’s bullishness has made other cryptomites appreciate as well with virtually the entire market on the rise. With the exception of XRP, which is facing a US Securities and Exchange Commission (SEC) lawsuit, most of the altcoins are up over 5%.
Bitcoin’s total market capitalization now stands at $517 billion. The entire cryptomino market is worth $742 billion. Digital currency has therefore reached 70% dominance.