Despite the subdued New Year’s mood, Bitcoin is already popping the champagne corks and laying down the cards for a promising 2021.
On the home stretch to the US $ 30,000 mark, the Bitcoin price (BTC) is doing a hasty year-end rally. With an increase of 4.4 percent in the last 24 hours, the largest cryptocurrency was quoted at 27,986 US dollars at the time of going to press, and thus only a few meters away from the milestone. If Bitcoin breaks through the next higher resistance at $ 29,726, a direct rise above the ten-thousand mark is only a matter of form.
To the crypto compass magazine
Even if Bitcoin should initially bounce off the resistance, the preliminary year-end balance is more than impressive. As a reminder, Bitcoin only started the new decade just over $ 7,000. Almost 12 months later, the digital currency posted an annual increase of around 280 percent. In 2020, the key crypto currency clearly demonstrated its immense potential and set the schedule for the coming year. Because both at the network level and with a view to market trends such as the increasing demand among large investors, the signs point to growth in 2021 as well.
The fact that the limited BTC supply is gradually becoming scarce has been an open secret, at least since the major purchases by institutional investors. Alone on the account so illustrious buyers such as asset managers Grayscale, software company MicroStrategy or payment service Square go according bitcointreasuriesin total already around 5.5 percent of the total amount in circulation. Payment giant PayPal has also been involved in the market since the introduction of BTC integration into the payment app and is already buying more Bitcoin than new ones are being added .
Even laypeople can see that the market is seething. The BTC demand of institutional investors exceeds the supply newly generated by miners. In addition, there are all the small investors who, in turn, are generating increased demand. As a result, the available supply volume is gradually shrinking, which drives the price up if demand continues to be high.
This correlation becomes particularly clear when looking at the declining Bitcoin reserves of the major trading centers. Stock exchanges have fallen by around 20 percent since March and there is no end to this trend in sight.