The Bitcoin Price surge continues to challenge traditional financial players outgrowing some of the big companies in size. The BTC price has surged 6.41% today moving past $19,200 levels hitting its new 2020-high. Bitcoin (BTC) is currently witnessing massive trade volumes trading at a price of $19,262 with a market cap of $357 billion.
With this, Bitcoin surpasses payments giant MasterCard which holds $338 billion of market cap. Since its correction last Wednesday, BTC has quickly added over $2000 to its price as it looks to break past its all-time high of $20,000. Post the ATH, Bitcoin will enter a new price discovery mode as analysts are expecting it to trade anywhere between $25,000-$100,000 in 2021.
With the recent market cap, Bitcoin (in market size) grabs a place among the top 15 companies by market cap. Note that the BTC market cap is the value of all circulating Bitcoin tokens in the market.
Bitcoin back over $19,000 again.
You can feel the momentum.
Scarcity, especially in a world of abundance, is a hell of a drug.
— Pomp 🌪 (@APompliano) November 30, 2020
Bitcoin Continues To Attract Massive Institutional Money
As the rising COVID-19 cases continue to dampen market sentiments, Bitcoin, on the other hand, continues to attract huge sums of institutional money. Recently, global investment giant Guggenheim Partners has sought exposure to Bitcoin and is willing to put around $500 million into BTC via the Grayscale Bitcoin Trust (GBTC). In its filing with the U.S. SEC, Guggenheim plans to invest 10% of its $5 billion Macro Opportunities Fund.
The institutional participation in Bitcoin has made it fundamentally stronger than it was ever before. Institutions invest with a long-term perspective and will stay for a longer time. Besides, the institutional purchase usually goes into cold storage creating a supply squeeze. So as the BTC demand surges, its price is likely to shoot exponentially in the future.
On the other hand, Bitcoin continues to decouple itself from Gold. The gap between the two continues to widen further in November.
#bitcoin and gold decoupled this month. #bitcoin is up 35% in November and 72% in Q4 pic.twitter.com/kySfq36mJv
— skew (@skewdotcom) November 30, 2020
Also, there’s a massive money outflow from Gold in recent times as the yellow metal is expected to correct majorly this week ahead. Bitcoin, on the other hand, triggers more institutional interest with more CME open interest. Earlier today, famous investor Raoul Pal said that he will liquidate all his gold investments and move it to Bitcoin. Popular trader Peter Brandt also revealed that Bitcoin remains his biggest investment in % asset holdings.
Apart from real estate, BTC is my single biggest position as a % of assets, but nothing close to the commitment Raoul has made.
— Peter Brandt (@PeterLBrandt) November 30, 2020