The price of Bitcoin for the first time confidently overcame the $ 20,000 mark on all exchanges and set a new all-time high. This event is significant for the entire industry, since now there are no obstacles to further growth on the cryptocurrency chart.
In addition, BTC bull run is underpinned by fundamental factors such as demand growth from institutional investors and uncertainty in the global economy.
We checked the actual data: early this morning, Bitcoin crossed the $ 22,000 line for the first time. At the moment, the cryptocurrency rate is $ 22,148, which is ahead of the result of a day ago by as much as 14 percent.
Here is the behavior of the Bitcoin exchange rate for the last month.
The market capitalization of the first cryptocurrency is $ 411 billion, and the daily trading volume exceeds 47 billion. For clarity, we present a graph of the total capitalization of the coin market in 2020
Why is Bitcoin growing?
Recall that the previous Bitcoin growth cycle ended at the end of 2017. At the same time, the price of cryptocurrency was pushed up mainly by individual investors and traders, and the presence of large organizations on the market was minimal. Now, things are different: the main digital asset has acquired appeal, even in the eyes of celebrities on Wall Street. Most importantly, large organizations usually make long-term plans for the assets in which they invest.
That is, in the near future we are unlikely to witness a “sale of bitcoins” at the suggestion of large companies. So there is every reason to believe that they are really waiting for new figures to appear in the total value of the cryptocurrency.
Public company MicroStrategy, which acquired $ 450 million in BTC earlier this year, was at the forefront of a new trend that prompted other moneybags to join the game. Here’s a great comment from MicroStrategy CEO Michael Saylor on the matter. The replica is given by Cointelegraph.
Bitcoin is the world’s best reserve asset and an emerging dominant money network. It is the solution to the savings problem faced by every person, corporation and government on earth. With him, the world will change for the better.
At the same time, BTC’s profitability figures this year again surpassed those of gold and the S & P500. And this happened despite the precious metal and the index hitting their own record highs this year. With that in mind, it’s no surprise that Wall Street takes Bitcoin a lot more seriously than it did in 2017.
For a traditional investor who focuses primarily on the dynamics of the markets, the advantages of Bitcoin are undeniable. For more clarity, we suggest you take a look at the comparison table of the profitability of BTC, stocks and other traditional assets for this year. Of course, cryptocurrency holds the first place by a huge margin.
According to Charlie Bilello, founder and CEO of Compound Capital Advisors, the cumulative return on investment in Bitcoin since 2011 is 6,271,233 percent. With that in mind, even the 512 percent gain on the Nasdaq seems ridiculous.
Note that Charlie carried out calculations at the BTC rate at the level of 19.5 thousand dollars. Accordingly, this indicator is now even higher. Well, the cryptocurrency has become closer to the average annual growth of 203 percent, which was 162 percent yesterday. Naturally, ignoring such an asset is at least financially unprofitable – and large investors are well aware of this.
In 2021, the gap between the growth of Bitcoin and other traditional assets is likely to only widen. The main cryptocurrency will attract more and more institutions, pushing the market upward through serious investments. The capitalization of all digital assets has already surpassed the $ 600 billion mark, so there is not so much left up to a trillion.
We believe that Bitcoin once again proved everything to everyone. Taking into account the latest price movements, absolutely all cryptocurrency owners are in the black, which means that any criticism of BTC from blockchain haters and gold lovers was previously irrelevant and erroneous.
Therefore, in the near future, it is worth waiting for retail investors to join the rally, who did not believe in the potential of the cryptocurrency niche and were afraid to get involved with Bitcoin. Now the coin is in the testing stage of unexplored highs, so many will certainly want to participate in this.