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Bitcoin (BTC) Inches Closer to $19,000 Today Moving Past $350B Market Cap

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by Bhushan Akolkar · 3 min read
Bitcoin (BTC) Inches Closer to $19,000 Today Moving Past $350B Market Cap
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It looks like Bitcoin bulls are preparing to take the BTC price above its all-time high of $20,000. While the BTC market rally has been overwhelming, several Bitcoin proponents thin that there’s a lot more to come in 2021.

Today Bitcoin (BTC) continues with its bullish rally further as the world’s largest cryptocurrency is just $1000 short of its all-time high. On Friday, November 20, the BTC price surged closer to $19,000 hitting its new 2020-high of $18,394. This is for the first time in nearly three years that Bitcoin has attained these levels.

Bitcoin’s growth has been phenomenal this year surging nearly 160% year-to-date. Keeping up with the historical trends, the BTC price has surged much faster after its halving in May 2020. In the last 50 days only, BTC price has surged nearly 74% hitting its new 2020-high on Friday.

In his recent interviews, Tom Lee, co-founder of Fundstrat Global Advisors, told his views about the latest rally. Lee said that he is more than ever before and expects an even bigger BTC rally in 2021. He added:

“The halvening happened this year, which of course historically is good for price, bit history also says that the year following the halvenings is much more important. Bitcoin was the best performing asset last year, 2019. It’s killing it this year; it’s just crushing all other hedges and asset classes this year, 2020. But in 2021 I think Bitcoin could be the year of the fireworks, so if people are interested, they really should realize that the best is probably yet to come.”

Interestingly, Bitcoin has hugely outperformed all other macro alternatives. While BTC price is up 160%, Gold has jumped nearly 25%. On the other hand, the stock indices like Nasdaq and S&P 500 have gained merely around 10%.

Today Institutional Demand for Bitcoin (BTC) Is Rising

One thing that makes this Bitcoin rally different from that of 2017 is the rising institutional demand. This is not just a FOMO triggered price surge but rather due to institutional participation. The hedge fund managers, veteran investors, and other institutional players are here to stay for a long time.

Digital asset manager Grayscale which runs the popular Grayscale Bitcoin Trust (GBTC) has seen massive institutional money inflow. In November itself, GBTC’s total assets under management (AUM) surged nearly 50% with more than $3 billion coming to the trust. At present, GBTChas more than $9 billion of total AUM.

Also, the data from Glassnode shows that the Bitcoin (BTC) balance on exchanges will drop by 18%. This on-chain market analyst says that the BTC liquidity is on a continuous downward trajectory.

This gives a strong indication that the BTC sell orders are drying up and investors are willing to hold longer. Bitcoin has been increasingly positioning itself as a potential hedge against inflation. Even some of the market veterans and institutions have accepted that millennials prefer Bitcoin over Gold. BlackRock CIO Rick Rider recently spoke the same in an interview with CNBC. Here’s what Mike Novogratz has to say about it.

With all that being said, the latest BTC supply crunch from Chinese Bitcoin miners have also fueled the rally. Today, at press time, Bitcoin (BTC) is trading at $18,694 (+3.17%) with a market cap of $346.8 billion.

Bitcoin News, Blockchain News, Cryptocurrency News, News
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