Bitcoin’s record-breaking start to the new year continued on Jan. 5 after top crypto hit another new all-time high (ATH) of $ 35,879. Based on this new milestone, the top cryptocurrency has already risen by more than 20% on the first of five days of the new year.
Record start by 2021
Interestingly, less than 48 hours after the digital asset’s brief crash, the new ATH hits just under $ 30,000 on Monday morning. However, since a further recovery, the trading volumes of the digital asset have also increased in the past 24 hours. Data shows that the volume exceeded $ 23 billion while the market cap now exceeds $ 635 billion. Even so, the top crypto has pulled back to $ 34,850 per unit at the time of writing.
Following the recent record performance, some Bitcoiners believe the digital asset could well outperform its own run by 2020. After the start of the year, worth $ 7,334 Markets.Bitcoin.comThe leading crypto ended up priced 200% higher this year. Some experts attribute that BTC The performance, which began after the infamous March 12 crash, was largely driven by rising interest from institutional investors.
Institutional investor interest
Since the beginning of the fourth quarter of 2020, many institutional investors and billionaires have made or endorsed acquisitions BTC as a viable alternative store of value. For example, bitcointreasuries.orgIt is estimated that there are currently 29 such companies, a website that tracks publicly owned companies that hold or have an interest in the digital asset. This interest has contributed significantly to the price increase since the beginning of October 2020. In addition, Glassnode reports that Bitcoin’s (BTC) The MVRV Z-Score rose sharply to values above 5. The MVRV Z-Score uses blockchain analysis to plot time periods in which Bitcoin (BTC) is massively over- or undervalued in relation to the fair value.
“It is now at the level of the main 2017 bull market,” said Glassnode. “Note that in 2017 BTC Made 10 more times over the course of 6 months, ”added the researchers.
In addition to increasing interest from institutional investors, PayPal and Square’s decision to allow their customers to buy and sell Bitcoin also increased demand for digital assets. Reports suggest that the two companies’ customers alone now account for all of 900 BTC that is broken down every day.
Still, many analysts predict a BTC With a price of $ 50,000 by the end of 2021, the price is expected to continue to rise.
Do you think BTC will reach $ 50,000 by the end of 2021 or sooner? You can share your thoughts in the comments below.
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