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Bitcoin (BTC) has registered a path-breaking rally this holiday season by surging more than 20% over the last week. Analysts are expecting that we can possibly see $30,000 in the near term with the falling BTC supply at exchanges.
Nothing can stop Bitcoin (BTC) at this moment as the world’s largest cryptocurrency continues to make historic moves northwards. Within a day of moving past $27,000, Bitcoin price registered its new all-time high of $28,288 on Sunday, December 27.
#Bitcoin has ranked as the largest financial service in the world based on market cap.
— Binance (@binance) December 27, 2020
The Bitcoin price rally has been more than phenomenal over the last week. Bitcoin has made over 15% advancements on the weekly charts and it doesn’t look to be stopping anytime soon. As CoinSpeaker reported, the Bitcoin (BTC) rally could be far from over even at this point. The bullish sentiment is much strong as retail participation continues to rise further.
It is very much possible that the bull run can take BTC further up to $40,000 as per analysts. However, the immediate target for Bitcoin remains $30,000. As per the latest Bloomberg report, Bitcoin (BTC) is all set to register its biggest-ever monthly gains since mid-2019. The BTC returns for December 2020 has already outsized the returns for its previous months of October and November 2020. Speaking to Bloomberg, Vijay Ayyar, head of business development with crypto exchange Luno in Singapore said:
“My sense is we’re very close to a top – we could hit $30,000 though. We should definitely see a pullback, but the magnitude is probably lesser. We might only see 10% to 15% drops.”
However, another report from Bloomberg suggested that Bitcoin (BTC) is likely to face increased regulatory scrutiny going ahead. However, it looks like investors’ aren’t deterred at this point looking at the massive institutional inflows during Q4 2020.
Bitcoin (BTC) Price Retraces Back to $27,000 Levels after Hitting New All-Time High
Soon after BTC crossed $28,000 on Sunday, it soon moved south losing $1000 in quick time. At press time, BTC is flirting around $27,000 with its market cap still holding above $500 billion. We can certainly expect some price volatility going further. Interestingly, PayPal Holdings Inc (NASDAQ: PYPL) has been sucking up all the volume ever since it went live with its trading services in the US.
When @PayPal went live, volume started exploding. The increase in itBit volume implies that within two months of going live, PayPal is already buying more than 100% of the new supply of bitcoins.#bitcoinshortage
Read: https://t.co/fb4d1xNxqx pic.twitter.com/yxQNAhsWJZ
— Dan Morehead (@dan_pantera) December 27, 2020
PayPal is yet to expand its services worldwide in early 2021. On the other hand, institutional giants who have been heavily investing throughout November 2020 are already seeing 30% returns on their BTC investments. Business Intelligence firm MicroStrategy Inc (NASDAQ: MSTR), which purchased over 70,000 BTC at an average price of ~$15,000 has already registered 80% gains on its investment at the current price.
MicroStrategy's $BTC holdings are now worth nearly $2 billion. The company's market cap is $3 billion.
Let's see how much its stock will get bid up this week.
— John Todaro (@JohnTodaro1) December 27, 2020
Any price drop for BTC over the last month has followed up with massive liquidity from institutions thereby swallowing the dips. On the other, the net outflow from exchanges continues rising meaning we are going to see a supply shortage very soon.