Bitcoin (BTC) Surges Past $16,000 to Hit A New 2020-High, ATH Is the Next Target
Bitcoin (BTC) made a swift move pushing above $16,000 levels for the first time since January 2018 and hitting a new 2020-high. The world’s largest cryptocurrency has been on a roll this year appreciating over 120% year-to-date and 325% since the March 2020 lows.
It has been a wild ride for Bitcoin investors as the Bitcoin continues to extend its market dominance. However, BTC’s move above $16,000 couldn’t sustain for a long time with huge sell order pulling it back to $15,800 levels.
At press time, Bitcoin is trading at $15,828 with a market cap of $293 billion. Even today, Bitcoin continues to attract institutional players and investing giants from the global financial industry.
Crypto market analysts suggest the Bitcoin’s move above $16,000 is a bullish sign and we can see it testing higher levels in a short time. Earlier this week around November 10, BTC price took a dip below $15,000 levels as whales and the Bitcoin miners started profit booking heavily. However, this proved to be beneficial for Bitcoin investors as per the report from FXstreet.
The publication cites two major reasons behind it. “First, it allowed whales to take profit on their positions at around the $15,000 support level. Second, it neutralized the futures market by flushing out late buyers or long contract holders. Resetting the futures market and the funding rate for Bitcoin futures contracts was critical for sustaining the ongoing BTC rally,” wrote FXStreet.
Over the last few months, institutional investors have been building their positions in Bitcoin (BTC). It all started with business intelligence firm MicroStrategy accumulating nearly 38,000 BTC tokens at around $10,000 average price while pouring a total of $425 million.
Soon later, a number of other companies started investing their reserve cash in Bitcoin as a potential hedge against the inflators markets. Jack Dorsey backed Square Inc also purchased BTC worth $50 million.
Recently, banking giant JPMorgan also admitted that Bitcoin has emerged as a favourable asset over Gold in the recent times. Digital asset manager Grayscale registered massive institutional money inflow for its Bitcoin Trust which has over $6 billion of assets under management.
On the other hand, big players from the financial payments industry like PayPal are also entering the crypto market. By 2021, PayPal plans to bring its crypto trading service worldwide while introducing crypto shopping facilities as well.