Bitcoin share price reaches new all-time high: cryptomarket becomes more mature
Three important factors contributed to the new Bitcoin all-time high of $19,892.
According to Coinbase and Tradingview, the Bitcoin (BTC) price officially reached a new all-time high of over US$ 19,892 on 1 December after almost three years.
Despite the slump last week, the BTC share price recovered over the weekend. BTC then climbed effortlessly above USD 19,000 on Monday and reached its all-time high, although not on all stock exchanges.
There are three factors which have been particularly favourable to the rise of BTC from below $3,600 in March to over $19,892. These three factors by Bitcoin Billionaire are the increase in institutional demand, reduced selling pressure and the resilience of BTC in 2020.
Most on-chain data show that institutional demand for Bitcoin has increased rapidly.
In November, Grayscale recorded an all-time high in its inflows. The CME’s Bitcoin futures market saw an increase in open interest of almost $1 billion.
Grayscale also said that more institutions would invest in crypto-currencies in the third quarter of 2020 than ever before.
Grayscale’s results are important to gauge institutional interest in Bitcoin. Indeed, the Grayscale Bitcoin Trust is often the first point of access to BTC for most institutions.
There is no exchange traded fund (ETF) for Bitcoin and other major crypto-currencies in the United States. Therefore, the Grayscale Bitcoin Trust is the closest investment vehicle for the US market to an ETF. The Grayscale report states
„In the 3rd quarter of 2020, more institutions than ever before invested and reserved $2.9 million for Bitcoin. This compares to $2.2 million in the third quarter of 2019. Institutions using multiple products from Grayscale’s offering have on average invested almost twice as much as investors using only one product“.
As Cointelegraph reported in August, MicroStrategy purchased $450 million worth of BTC and made Bitcoin its primary reserve. That was probably the spark that sparked the current wave of institutional demand for this digital asset repository.
Throughout the summer, more and more high-profile names invested in Bitcoin came forward. These included Square, Paul Tudor Jones and later Stanley Druckenmiller. This only added to the positive market sentiment.
I call this chart „The Traditional Onslaught“.
We’ve been talking about „The Herd“ for 3+ years. The Herd requires career risk cover. This is that.
They are by definition not early adopters, but their pockets are deep & their capital is sticky. #Bitcoin is just getting started. pic.twitter.com/jC7uVBXxxW
– Travis Kling (@Travis_Kling) November 30, 2020
In November, Druckenmiller stated that Bitcoin is likely to be around for a long time to come, having overtaken gold by a wide margin in 2020:
„It has been around for 13 years. And every day it is becoming more stable as a brand“.
Six months after the halving, sales pressure from whales remained low in November, according to on-chain data. In other words, the amount of Bitcoin sent to the stock markets by very wealthy investors fell steadily over the month.