Bitcoin Smashes through $28k before Minor Correction
Bitcoin’s (BTC) monumental price surge currently seems to know no bounds.
Bitcoin Continues With Its Historic Price Trajectory
The world’s largest cryptocurrency by market cap, bitcoin today surged past $28,000 BTC, smashing yet another all-time high for the premier digital currency. However, BTC crashed more than 6% soon after hitting the $28.4k sell wall.
Regardless of the small correction, there is no denying that BTC has emerged as the best performing asset in this tumultuous year. After passing through $28,000, bitcoin achieved a market cap of half a trillion USD.
Close followers of the cryptocurrency industry would remember the sudden jump in bitcoin price started sometime in October when it was trading roughly around $10.5k. Since then, the price of the flagship digital currency has nearly tripled.
Compared to its infamous crash to sub $3,000 figures early this year during the onset of the coronavirus pandemic, bitcoin’s current market price is nearly seven-times its price in mid-March.
Institutional Interest on the Rise
BTC’s historic price rise in the past couple of months could be attributed to several factors, including strengthening fundamentals, supply-side halving, and increased institutional investor in the asset class.
In 2020 alone, several publicly-listed companies started the trend of adding bitcoin as a reserve asset in their balance sheet as a hedge against the weakening greenback.
The first major company to place its bet on BTC was MicroStrategy, whose CEO, Michael Saylor, continues to be one of the most vocal bitcoin supporters on the web. A similar move was followed by Jack Dorsey’s Square which added bitcoin worth $50 million to its balance sheet.
According to an estimate in October, close to $6.75 billion worth of BTC was held by public companies.
As reported by BTCManager in November, major asset-manager Guggenheim Partners became the latest to join the bitcoin bandwagon as it was seeking “investment exposure to bitcoin indirectly,” a filing showed.
Similarly, earlier this year, highly reputed hedge-fund manager and founder of Tudor Investment Corporation, Paul Tudor Jones dubbed bitcoin as a hedge against “great monetary inflation,” adding that he is going all-in on the world’s largest cryptocurrency.
