After previously touching the price of $ 19,800, then it has dropped considerably to $ 19,100. Tonight BITCOIN finally managed to touch $ 20,000.
Tonight December 16, 2020, for the first time Bitcoin (BTC) price has reached $ 20,000. This is a new all-time high.
The next possible price target under the Stock to Flow model will occur in May 2021 where the Bitcoin price is worth $ 23,001.38. Then in November 2021 Bitcoin is predicted to touch more than $ 100,000 again. Details about stock to flow predictions can be found
At the same time, this rally is different from 2017 for several reasons which could help BTC bounce higher. These include increased institutional demand, increased perceptions among investors that BTC is a store of value, and stronger network fundamentals.
Crypto activists have also previously predicted this impressive price achievement for Bitcoin, one of which is TRIV CEO Gabriel Rey, who was contacted by Coinvest in the 2020 halving commemoration.
Crypto activists have also previously predicted this impressive price achievement for Bitcoin, one of which is TRIV CEO Gabriel Rey, who was contacted by Coinvest in the 2020 halving commemoration.
Institutional Demand Triggers Bitcoin Price Rally
In December 2017, data showed that retail and mainstream investors were behind Bitcoin’s rally. At that time, CME BTC futures was just launched and lacked institutional investment tools.
As such, the rally was driven largely by retail investors, who suddenly came to a halt after the whales-induced strong sell-off. This time, the platform focused on institutional investors saw an explosive increase in trading activity. For example, the CME BTC futures market recently posted $ 1.27 billion in open interest, ranking just behind OKEx as the second largest in the global Bitcoin market.
Institutional investors are unlikely to invest in Bitcoin with a short-term strategy. Many are increasingly seeing it as a digital store of value and an alternative to gold. As Cointelegraph previously reported, the Grayscale Bitcoin Trust premium increases, indicating that institutions are increasingly seeking exposure to BTC and paying above the spot market price for the privilege.
BTC is increasingly seen as a store of value
Both high-value institutions and investors are starting to recognize Bitcoin as a store of value and as a treasury asset. MicroStrategy, a public company in the US that bought $ 450 million worth of BTC earlier this year, sparked a trend that saw other institutions allocating capital to Bitcoin. The perception of BTC as a hedge against inflation and a stable store of value could make BTC attractive to the broader financial sector in the medium to long term.
“Bitcoin is the world’s best treasury reserve asset and the dominant emerging monetary network. It is the solution to the value storage problem faced by every individual, company and government on earth. When this news comes out, the world will change for the better, “said Michael Saylor, CEO of MicroStrategy, quoted from Cointelegraph.
Bitcoin Fundamentals Are Stronger Than Ever
As Cointelegraph reports, Bitcoin’s fundamentals are stronger than ever as the network is now moving $ 500,000 per second around the world. In other words, Bitcoin transfers $ 4.627 billion in value per day.
