The value of the king of cryptocurrencies-BTC, is growing, and it seems that the mark of 37K $ is just another stage of overcoming resistance, and turning it into a support level.
BTC approached $42K
While some expected the price of Bitcoin to return to $ 20,000 by the end of 2020, it is rapidly approaching $ 40,000, and the cryptocurrency market is now more than $ 1 trillion.
These figures are attracting more and more investors who were previously not so interested in buying cryptocurrencies. Institutional investors are indeed responsible (in a good way) for this impressive growth of the crypto market. For example, the Grayscale investment fund announced that it has broken the $ 22 billion mark in crypto assets such as BTC, ETH or LTC.
The media is seriously starting to talk about this rapid ascent of Bitcoin, which is causing panic in traditional markets. Jean-Claude Trichet, the former president of the ECB, says that the world has gone crazy, and especially with regard to Bitcoin.
Major financial resources and banks are certainly feeling overwhelmed by these billion-dollar investments in BTC. According to estimates of the US bank JPMorgan, the price of Bitcoin in the future may reach $ 146K, and the demand for the purchase of MTC may reach $ 600 billion.
The appetite for Bitcoin from institutional investors continues unabated, and the price of BTC continues to rise rapidly.
Bitcoin will never go back to 20K $
Without doubt, BTC is nonsense, as its impressive growth every day seems to go to infinity. After closing at a historic high of $ 20K in mid-December, its uptrend shows no signs of slowing down.
Alex Kruger, an economist and crypto trader, stated that BTC may never fall below the psychological level of $ 20,000 moving forward. He noted:
“Bitcoin will most likely never trade below $20K again. The magnitude of market adjustments should decrease dramatically with increasing institutional adoption.”
The price of 20 thousand dollars was the highest achievement of BTC in December 2017. Since then, the crypto community has been waiting with bated breath to see if this price can ever be reached.
Thus, December 2020 will be recorded in the history of Bitcoin as the month when the leading cryptocurrency broke the record price (ATH) of 20K set three years ago.
The unstoppable crypto-asset
Bitcoin is currently trading at $ 37k, up 28% over the past week. This bullish run resulted in a market capitalization of $ 693 billion, and the total value of the crypto market exceeded $ 1 trillion.
Kruger thus bases his argument on the fact that as more and more institutional investors continue to accept Bitcoin as a hedge, market corrections are dramatically decreasing.
This increased acceptance will help push the $ 20,000 resistance to the support level. As a result, the leading cryptocurrency will leave this price behind and trade above it, moving forward.
The leading economist also said that those who expect BTC to fall by 80% are similar to those who expect the S&P to fall by 50%. His remarks came days after leading U.S. bank JPMorgan Chase & Co. He said that the displacement of gold as a safe-haven asset could mean a large growth potential for Bitcoin in the long term, and will reach $146,000.