Bitcoin price update: Bitcoin smashes all-time high record
Bitcoin makes new all-time high and appears to be surging further ahead as Asian markets react to the moves in European and US markets.
Bitcoin has reached a new all-time high. US-based cryptocurrency exchange Gemini had Bitcoin selling at $21,142 breaking through what was a key psychological barrier for many in the market.
Bitcoin has struggled throughout 2020 to break the all-time high set in late-2017 which saw massive sell-offs in the months after.
While it has taken three years for the burgeoning asset to reclaim the $20,000 threshold it has done so with a bang. In 2020 Bitcoin was selling as low as $5,168 in mid-March. Even as recently as 1 September, Bitcoin traded at $10,027 doubling in price in just over three months.
One of the reasons that $20,000 is a key psychological milestone is because analysts are divided about where Bitcoin will go from there. A key question is whether it will be pushed back by the market or whether $20,000 will be a new base price. Ki Young Ju who is CEO of CryptoQuant said that large investors in Asia had placed sell orders at around $19,500 which would cause "prices to drop."
Going against that, data from Skew shows that prior to Bitcoin beating its all-time high, futures markets had priced in a 35% chance of Bitcoin closing the year out above $20,000. The chances of that were below 1 in 10 when Bitcoin was half its current price in September of this year.
In the market for exchange-traded funds (ETFs), Bloomberg reported a 72% increase of the Bitwise 10 Crypto Index from its debut only a week ago. The same can be said today as Bitwise reached a high of $144. That means Bitwise has shown two days of 70% growth in one week.
Denis Vinokourov, from London-based crypto-investment firm Bequant, advised "now that Bitcoin has passed $20,000", there's more chance of mum and dad investors increasing the retail investment of Bitcoin.
He expects that "FOMO is now in overdrive", suggesting that with the market now seeing the 100% increase since only September many people won't want to remain on the "sidelines".
Although, not everyone shares similar unbridled optimism.
Glen Goodman who is a well-respected investment mogul said that "History has a warning for people buying at the new all-time-high." He went on to say that he shares most analysts' optimism around the long-term growth prospects of Bitcoin. However, he cautioned that "four years ago we had a very similar situation with Bitcoin breaking new ground, but just two weeks later its price plummeted by more than a third".
Bitcoin appears to be surging towards $21,000 as Asia awakens to Bitcoin's all-time high, which at the time of writing is selling at $20,977 at the Gemini Exchange spot rate.
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