Yesterday we wrote that bitcoin was worth $25,000, a new record…. that hasn’t lasted a day. Meanwhile, the bitcoin exchange rate has risen to $28,300 (€22,800).
Next stop: moon
Bitcoin went to the moon in a rocket at the end of December. Since 11 December, the bitcoin rate has risen by no less than 62%. And since Christmas Day, on a day when everyone is free, the course has been moving parabolically upwards.
The bitcoin price has risen by more than 14% in the last 24 hours alone, and investors Bitcoin Circuit are now monitoring the psychological limit of $30,000 per bitcoin for the first time. As a result, the combined value of all bitcoin tokens in circulation has passed half a trillion dollars (500 billion dollars) for the first time.
The huge increase in bitcoin prices at Christmas is mainly caused by consumers because traditional markets are closed,“ said Marc Bernegger, member of the board of Crypto Finance Group.
I wouldn’t be surprised to see a healthy correction when these markets open on Monday. Compared to the huge short-term price gains of bitcoin in the past, there are many more professional investors involved in the market today. This will lead to faster price corrections and a reduction in long-term price volatility‘.
Money printer confirms bitcoin
A growing number of major investors and Wall Street giants have cited bitcoin as a potential inflation hedge this year. They, too, want to protect themselves from a wave of inflation they see on the horizon as a result of unprecedented public spending in the wake of the coronavirus pandemic.
Last week the British fund manager Ruffer Investment Management pushed bitcoin above the price level of USD 20 000. That happened after they revealed that the fund had bought USD 745 million worth of bitcoin.
There is no end in sight, the Central Banks keep printing money. This only confirms the bitcoin story even more,‘ said Charles Hayter of CryptoCompare. Funds are exposing their portfolios to bitcoin and the herd is just starting to move.