Bitcoin is currently inching closer to $20,000 as it broke all-time-high price records on several exchanges including Binance, Kraken, and Gemini. The top cryptocurrency overcame a weekend price correction which saw it lose 14% of its market cap, plunging its price to near $16,500. Bitcoin came on top today as its price soared by more than 8% to record a new yearly high and ATH on many exchanges.
— Tyler Winklevoss (@tyler) November 30, 2020
The bullish momentum was so strong that bitcoin almost neglected a glaring bitcoin futures gap of nearly $2,000 which many believed could possibly force the price to correct up to $17,000 to fill the CME gap generated over the weekend.
The current bullish burst is believed to be driven by the excess buying by new mainstream financial giants such as PayPal and Bitcoin management trust fund Grayscale who are currently buying more bitcoin than it is being generated. It was anticipated that when markets open PayPal and Grayscale would buy more bitcoins which would drive the price further.
"If our inflows at Grayscale are any indication of the types of investors that are interested in this asset class or the sizes of allocations being made, we're just getting started," says @Grayscale's @Sonnenshein on the price of #bitcoin #btc pic.twitter.com/6d0GUBqgaM
— Squawk Box (@SquawkCNBC) November 30, 2020
Institutional FOMO has been the driving force behind bitcoin’s dominant bull rally and it seems more mainstream asset management firms are looking to hodl the scare digital asset before its scarcity goes beyond their reach. Guggenheim, one of the largest global investment firms with over $275 billion worth of assets is planning to invest 10% of its net asset value worth $5.3 billion Macro Opportunities Fund to invest in Grayscale Bitcoin Trust.
$20,000 On The Cards?
Bitcoin did test ATH on several exchanges today, however, it did not hold the position for long and fell below $19,500 immediately. The king coin is currently trying to breach $19,500 resistance and once it does that, it has a good chance of seeing $20,000 by the end of the day. Although bitcoin price ATH differs on different exchanges, many bitcoin proponents have called $20,000 as the ‘real’ all-time-high. While one popular Twitter Crypto Twitter handle Blockfolio tweeted that for adjusted inflation the real ATH would be at $21,245.
When adjusted for inflation, the #Bitcoin all-time high is $21,245.
— Blockfolio (@blockfolio) November 30, 2020
The Bitcoin bulls look quite dominating momentum brushing aside any hurdle small or big in its way, if it manages to break and hold above $20k we could witness a different league of price momentum never seen before.