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Bitcoin And Ethereum At The End Of 2020

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by Konstantin Anissimov · 4 min read
Bitcoin And Ethereum At The End Of 2020
Photo: Depositphotos

The end of the year is approaching, and the crypto price surge is still going strong. Bitcoin and Ethereum have managed to hold on rather well after reaching their yearly highs recently, not allowing the resistances standing above to push them down too hard.

Bitcoin In The Second Half Of December

Bitcoin has attracted a lot of attention in the past 10 days or so, as the coin hit a new all-time high several times during this period. Originally, it reached its old ATH – the one from 2017 – at $20,000 around December 17th. However, this level did not even slow it down as it rushed towards the new record at roughly $23,500.

The price was slightly rejected, but it did not go far, Eventually, it returned on December 20th, making yet another ATH at $24,200. Once again, the price had a small rejection to deal with, but for the most part – it remained close to its ATH and next resistance.

Today, December 26th, the price made yet another ATH, right after Christmas. This time, it surged to $24,980 before being rejected by the crucial resistance at $25k.

Many have seen this as Bitcoin’s next big goal, ever since the $20k milestone was hit.

So far, the demand for the coin did not drop. If anything, it is likely to increase in days to come. As Bitcoin’s 12th Birthday approaches. Bitcoin is currently so big and popular that it didn’t even feel the heat that is consuming XRP after the US SEC recently filed a lawsuit against the coin’s creator, Ripple.

Meanwhile, in expectation of an ‘avalanche of institutional investors,’ Bitcoin Funds are emerging all over the world, such as Skybridge Bitcoin Fund, which was launched with $25 million only a few days ago.

What Was It Like For Ethereum In The Past Week?

Similar to Bitcoin, Ethereum has seen a lot of success when it comes to the coin’s price in the last 10 days or so. The coin’s value is still far away from its all-time high, but Ethereum is slowly continuing up, and it is currently not far from being halfway towards its ATH.

As some may remember, ETH ATH was reached in early 2018, and it was $1432. Meanwhile, the coin’s 52 week high, as reached only a few days ago, is $673.

Still, late 2020 has been an important period for Ethereum. The coin managed to start and complete Phase 0 of its ETH 2.0 launch, and it even started Phase 1 on December 1st.

The combination of the Bitcoin rally and great expectations of ETH 2.0 has caused quite a bit of demand for Ethereum, as well. Not to mention the DeFi sector which blew up on the project’s platform earlier this year, plus all the apps and smart contracts that it usually has to deal with.

In other words, Ethereum has been a busy blockchain, and there is no indication that this will change anytime soon.

Until December 17th, the coin was held back by a resistance at $600. However, the resistance was finally broken just as BTC surged past $20,000. Since then, Ethereum was mostly trying to reach $700, although it never got far past $650. For the most part of the last week, it fluctuated between $600 and $650, and right now, it appears that its price might be preparing to have another go at its resistance.

What To Expect From Bitcoin And Ethereum In Days To Come?

As usual when it comes to rallies, Bitcoin is the coin leading the market. While Ethereum certainly has its own reasons to grow independently, it seems to be following Bitcoin’s lead.

Bitcoin itself, historically, saw its price trade sideways in the week between Christmas and New Year’s Eve, with its price once again picking up in January of the next year.

Of course, this might not be the pattern that the coin will take this year – as Bitcoin adoption and demand grow, the rules of the game continue to evolve and change, just like the coins themselves.

Bitcoin seems to be in an interesting place right now, with its latest ATH only $20 away from a psychological level of $25k. Should this level be reached and breached, there is no telling how high up Bitcoin could go.

Bitcoin 2021 Price Prediction

CEX.io executive director, Konstantin Anissimov, gave his prediction for the future recently, stating that “The stock-to-flow model has been extremely accurate at anticipating Bitcoin’s future price action as a direct result of the supply shock it experiences following each halving.

Based on this fundamental indicator, BTC’s scarcity is highly correlated with the value of the network. As this cryptocurrency’s rate of production dropped to 328,500 new tokens per annum in August, such a significant cut is expected to have serious implications in prices. Indeed, Bitcoin’s stock-to-flow doubled and the projected market value may increase by 10x if history repeats itself, which translates into a $50,000 Bitcoin by the end of Q1 2021.

Given the increasing demand from institutional investors who are looking to hedge against inflation, the flagship cryptocurrency could double in price within months after achieving such a milestone which will help it surpass $90,000 by the end of 2021.”

Altcoin News, Bitcoin News, Cryptocurrency news, Ethereum News, Guest Posts
Kseniia Klichova
Author: Konstantin Anissimov

Executive Director at CEX.IO. His area of responsibility includes customer relationships with institutional and VIP-clients, overseeing the creation of the company’s development strategy, new products, markets and partnerships. As a member of the board of directors, Konstantin is also responsible for corporate governance.

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