Bitcoin bulls today managed to shrug off a minor market correction to record a new all-time high of $28,533. The top cryptocurrency experienced a market correction on 27 December after soaring past the $28,000 barrier, registering a nearly $2,000 price crash. However, bitcoin over the past two months has overcome most of these flash crashes and market correction with ease.
Bitcoin’s ongoing mammoth price rally starting towards the end of October at around $13,000 has continued the momentum over $28,500 and does not seem to take a break or signs of any fatigue. With each passing day, the scarce digital asset is becoming a more prominent store of value in the eyes of institutions than gold.
The top cryptocurrency has managed to outperform gold, oil, and Dow Jones indices by quite a margin despite showing quite a similarity in price movements to that of the S&P 500 at the time of Bitcoin halving.
Retail Players Have Entered the Bitcoin Arena
The strong institutional interest combined with the overbuying of bitcoin by these multi-billion dollar companies were believed to be the driving force behind the ongoing bitcoin bull rally. Institutions such as PayPal. MicroStrategy, Square Inc, and GrayScale are currently buying more bitcoin than what is being produced by miners every day. Many analysts belive it was the primary reason behind Bitcoin’s continuous rise without any exhaustion.
With institutional interest showing no signs of slowing down as more number of publically traded companies are converting a portion of their treasury into Bitcoin, retail players seem to have arrived at the Bitcoin party as well. The first signs of retail entry were observed on Christmas eve when Bitcoin managed to cross $25,000 on a weekend when most of the institutions are in-active. However, even now the retail interest is nowhere near the peak of 2017 which only suggests that Bitcoin price would continue to soar in 2021.
2017 retail interest vs 2020 institutional interest:
— Bloqport (@Bloqport) December 27, 2020
Bitcoin Record New ATH During Asian Session
Most of the Bitcoin frenzy was limited to the West where most of the institutions have come out in support of Bitcoin buying in-loads to ensure their future. However, Asian markets were the prominent reason behind the 2017 drive and they have finally arrived at the ongoing bitcoin bull rally as the recent price rise of bitcoin came during the Asian session.
Asia too, can buy dips.
Bitcoin hits new all-time high above $28,500.$BTC
— Joseph Young (@iamjosephyoung) December 30, 2020
The entry of Asian investors could help bitcoin end the year on a high and chances of breaching $30,000 looks more bullish than ever. If trade pundits are to be believed, 2021 would prove to be quite historic for the top cryptocurrency as retail would join institutions in full force.