Bitcoin to infinity and beyond: enters a new phase, “towards $ 28,000”
Institutional investors increasingly use Bitcoin to diversify their portfolios
Bitcoin has given the markets another one of those historical moments that the queen of cryptocurrencies used to have us used to in 2017. December 2020 has been the time chosen by investors for the digital asset to have broken the barrier of $ 20,000 , with its price rapidly accelerating toward $ 24,000 this Thursday, after hitting its three-year milestone on Wednesday. Once he broke that mark, “the market expected a quick run to $ 24,000 – $ 28,000,” recalls Ava Trade analyst Naeem Aslam.
And so it has been. According to the CoinMarketCap index, the most traded of the crypto currencies has accumulated increases of 24% intraday and exceeds 23,000 dollars , after being placed “in free rise”, underlines the expert of Bolsamanía, José María Rodríguez. Volatility takes its toll on the asset, with quick sell-offs bringing it back to $ 22,000, which is a normal reaction to the magnitude of the rise, although Aslam notes that “a broader correction could occur if the bullish rally continues toward the first price objective mentioned above in a rush. ” “The most normal thing is that it goes up gradually, from now on,” he says.
All in all, the euphoria is felt among experts, as is the case with Antoni Trenchev, co-founder and managing partner of Nexo, a crypto lender. “The focus shifts to the next round number of $ 30,000 , ” he said in statements collected by ‘Bloomberg’. The bitcoin crossing above $ 20,000 is its second major milestone in recent weeks, and it is that at the end of November the currency created by Satoshi Nakamoto reached a new three-year high. The cryptocurrency does nothing more than vindicate the bullish forecasts that many mocked months ago, following the blow it suffered from the Covid-19 pandemic, and is causing the forecasts to be even higher.The value of bitcoin has almost tripled this year, with many already targeting $ 100,000.
In the crypto market, other ‘altcoins’ are also boosted , more than 27%, in the case of ripple, which is bought at 0.56 dollars, or 10% in ethereum or 25% in litecoin, which change hands at $ 660 and $ 100, respectively. The total capitalization of crypto currencies amounts to 631.4 billion. The bitcoin pull is accelerating purchases in a market that is expected to be one of the protagonists of 2021.
THE STRONG HANDS
Experts are very encouraged by the recent pull of the creation of Satoshi Nakamoto which is due to the interest of institutional investors. “This week it emerged that asset manager Ruffer had taken a position worth hundreds of millions of pounds in bitcoin and this may be driving the idea that the cryptocurrency is entering a new phase as more large firms could use bitcoin to diversify their portfolios, “say the experts at AJ Bell.
“The biggest driver of the current price increase is mainly institutional money , “ says Alejandro Zala, Country Manager at Bitpanda in Spain. “Furthermore, this 2020 will be remembered as the year that crypto became mainstream,” he argues. Without going any further, this week Apple announced that it will allow the purchase of cryptocurrencies through Apple Pay, one of the largest mobile payment providers in the world. In Spain, BBVA was the first large bank to offer the service of purchase, sale and custody of digital assets to its clients. “There is a clear change of mentality: the new generations see in Bitcoin the gold of their generation,” says Zala.
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