According to the CoinMarketCap data, Bitcoin has made a daily gain of 6.671% to its current price of $27,965.
Bitcoin price has in the last quarter of the year showed what it got by combining all market behavior in its recent run to the top. Crash, bear run, bull run, and setting new records have all been witnessed within a week and 24 hours. According to recent data, Bitcoin has set a new all-time high price record of $28,533 after taking a rebound from $26,395 on December 29, 2020. This is a great performance in preparation for the new year. Unlike the late 2017 and early 2018 bull run that saw the Bitcoin price dragging almost all the altcoins along, this current moment has had a little effect on most of them with XRP moving to the opposite side due to its lawsuit. Litecoin, Ethereum, and the rest are still a bit far from their all-time high prices.
According to the CoinMarketCap data, Bitcoin has made a daily gain of 6.671% to its current price of $27,965. The reason for this record run has a lot to do with the high interest of Institutions in the Bitcoin investment. This can be deduced from the Grayscale Investment Trust report in the third quarter that revealed an 81% investment from the various institutions. Also, Bitcoin which has a limited supply is seen as a perfect hedge against inflation. The likes of Skybridge Capital Limited, Guggenheim Partners, and MassMutual Life Insurance Company among many committed $25 million in December, up to 10% of its $5 billion micro funds, and $100 million in December respectively.
Interestingly, institutional investment is expected to hit a high run to cause Bitcoin to beat its current all-time high price in the coming year with many other institutions exploring the digital asset as their next investment destination. The most recent run had a contribution from XRP investors switching to Bitcoin until the issue with the US Securities and Exchange Commission (SEC) is resolved and some exchanges resume their position on XRP trading and deposit.
In 2019, Danny Scott, the CEO, and Co-founder of CoinCorner, predicted that Bitcoin would record an all-time high price by trading between $30,000 and $50,000. Though the Bitcoin price is on the verge of falling within this prediction, it is safe to applaud him regardless of what happens between now and tomorrow. His prediction was largely based on global awareness and consumer interest that has been a massive boost for the Bitcoin price. The year was supposed to be a rough one for the digital asset due to the pandemic that forced people to liquidate their assets for their personal use during the lockdown and the cracking down of cryptocurrency exchanges in China.
However, the positive movement of other price determinants was stronger enough to move the price upward. Coupled with the Bitcoin halving event that took place in May 2020, the price has responded very well with the coming year expected to be more dramatic.
Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.