Valorization of 278% in one year.
At dawn on Wednesday (30) Bitcoin broke a new price record and was traded above US$ 28 thousand. The digital currency follows a strong upward trend that saw its price rise 8 thousand dollars in just two weeks. In Brazil the digital currency is traded above R$ 150 thousand.
In the last 30 days alone Bitcoin Up platform valuation was 54%. At Christmas (25), cryptomoeda reached a new record and was traded for US$ 25. Curiously in the following days the price broke new records: 26/12 (US$ 26 thousand) and 27/12 (US $27). The valuation of the digital asset in the year is now 278%.
Bitcoin’s current high is attributed to institutional adoption, where several companies are buying the currency as a form of protection against an impending financial crisis.
The digital currency is experiencing its fourth big boom since it was created in 2009. The last big record was in December 2017, just before it fell to a low of around $3,200.
2020 will be remembered as the year in which Bitcoin experienced institutional investment. From 2010 to 2012, the asset was mainly used by libertarians and was considered a currency of „people who mess with computers“. In 2013 it reached the mainstream for the first time, who bought the asset until 2016 is considered a pioneer.
In 2016 and 2017 when the asset broke its first price record it was the turn of retail, ordinary people. They bought it up and sold it downtown.
Now, in 2020, the giants have arrived. Who is buying Bitcoin now are the big companies, investment fund managers, and even governments. These people don’t buy at high to sell at low.
Based on Bitcoin’s current performance and the fact that less than 0.2% of the world’s population owns the digital currency, many analyses outline an optimistic future for crypt currency.
Bloomberg said that by 2021 the asset could surpass US$1 trillion capitalization, that would make the price of the digital asset reach US$50,000.
Citibank is even more optimistic and believes that Bitcoin will surpass US$ 300 thousand by the end of 2021.
Last week when Bitcoin was trading below 24 thousand, Tony Vays, a Wall Street veteran said the digital currency would be worth 28 thousand by the end of the year.
The forecast happened.
Maybe by luck?
Maybe, but the analyst expects Bitcoin above $100,000 by 2021.
On the critical and pessimistic side there are those who say that Bitcoin’s high is completely misplaced and will even make people jump out the window.
Bitcoin’s rise has made other cryptomites appreciate too with almost the entire market on the rise. With the exception of XRP, which faces a lawsuit from the U.S. Securities and Exchange Commission (SEC), the majority of the altcoins are valued above 5%.
The total market capitalization of Bitcoin is now US$ 517 billion. The entire cryptomino market is worth US$ 742 billion. The digital currency has therefore reached 70% dominance.