The Bitcoin price not only hit a new all-time high of over USD 26,000, but also cracked the psychologically important mark of USD 25,000. Even on the otherwise rather quiet public holidays, where there is little trading, the Bitcoin price can no longer stop. Why the pressure to the north is currently so high.
In the morning hours of Boxing Day, the time had come. For just a few seconds, the Bitcoin price briefly touched the $ 25,000 mark. During the course of the day, the price rose significantly and is now at $ 26,447 at the time of going to press . An impressive plus if you consider that the price was still hovering around 18,000 US dollars at the beginning of December. In the second half of December, the Bitcoin price started again for the final Christmas rally, as the chart shows:
Pressure from institutional investors continues
As already explained many times , the Bitcoin rally in the last quarter of 2020 is primarily due to institutional investors. So it is not primarily private individuals‘ money that is entering the market, but that of companies, hedge funds, fund companies, etc.
As in the traditional financial sector, these professional players determine how the courses develop. So not only the Nasdaq Group MicroStrategy for another 650 million US dollars Bitcoin bought as CEO Michael Saylor on December 21 via Twitter announced , but also more traditional investment houses.
For example, the American insurance company MassMutual should be mentioned here, which recently acquired Bitcoin for 100 million US dollars, as well as the Guggenheim hedge fund , which invests up to 10 percent of its five billion fund in BTC. New major investors are added almost every day, buying Bitcoin, but also other cryptocurrencies, in the double or triple-digit million range. This trend is then reinforced by private investors, who are also jumping back on the crypto bandwagon.
Bitcoin course: what’s next
It is no secret that many more institutional investors will push into the crypto market in 2021. Since the market capitalization of the crypto market is still small compared to other asset classes, these capital inflows should continue to provide support for cryptocurrencies.
The growth of traditional securities securitisations is particularly interesting here. These also enable investors without a wallet and the willingness to hold tokens to get into Bitcoin and Co. In the past few weeks, a number of new “Bitcoin securities” such as Exchange Traded Notes (ETNs) have been issued. The classic securities account is sufficient to participate in the Bitcoin price. This, too, should be seen as a positive sign at both private and institutional level.
2021: These trends are on the agenda
Bitcoin has sent a clear signal with the year-end rally: The crypto currency, which was once only attributed to geeks and nerds, has grown up and is finding its way into the institutional sector with broad mass acceptance. But what are the topics that are on the agenda in addition to the pure Bitcoin price development in 2021? What underpins the latest price rally and what hurdles are there for Bitcoin and the crypto sector to overcome? Which crypto and blockchain trends (also apart from Bitcoin) will determine the year 2021? We have summarized the top trends for 2021 in the current December issue of Kryptokompass Magazine .
BTC-ECHO readers had the right nose
Our screenshot of the Opinary survey that was posted on our site over a week ago proves that our readers have a good feel for the course. There we asked if the Bitcoin rate would rise to over 25,000 US dollars this year. Of the more than 8,500 participants, 76 percent answered YES and were thus right. The expectations were even significantly exceeded with currently> 26,000 USD per Bitcoin.