Bitcoin: new all-time high at over $ 28,000

Posted on Dec. 2020 at 10:30Updated 30 Dec. 2020 at 11:01

Bitcoin is about to end the year with fireworks. The price of the most famous cryptocurrency recorded a new all-time high on Wednesday, December 30, at 28,579.59 dollars according to data from Coindesk. In December, the currency gained 50%, and since the start of the year, the increase has amounted to almost 300%. In 2020, bitcoin took advantage of the influx of money from the institutional world. According to a survey of professionals by Bank of America-Merrill Lynch, bitcoin is one of the three most popular investment themes in the markets.

Arrival of institutions

The interest in cryptocurrency is also explained by the economic crisis and the decline of the dollar. Some investors see bitcoin as a hedge against inflation and the greenback’s decline. The appetite of individuals, the driving force behind the increase in 2017, remains strong: “ although the growing presence of institutions explains the bull market, we can also see a growing interest from individuals who perceive it as a form of digital gold », Analysis with Bloomberg Paolo Ardoino, technological director of the Bitfinex platform.

Unlike 2017, the surge in prices is “ more gradual “, Punctuated by” leaps ” and of ” healthy fixes “Allowing a good” consolidation ”Of courses, explains Naeem Aslam of Avatrade who thinks that the course will climb to 50,000 dollars. Other analysts go further: Willy Woo, for example, predicts a bitcoin at $ 200,000 at the end of 2021. A bet that he judges ” conservative “! Among crypto-analysts optimism is in order: 2020 was a turning point and the start of a new chapter for cryptocurrencies.

The weight of regulation

Despite the rise and democratization of bitcoin, regulation remains a concern for investors, which weighs on the prices of certain currencies. Last month, the US financial markets policeman, the Securities Exchange Commission (SEC) accused Ripple Labs Inc. and its executives of deceiving investors with its XRP token.

If Ripple is determined to dispute these allegations, this attack raises fears of new interventions by regulators in the world of cryptocurrencies. In the wake of the accusations, XRP fell 70% and remains under pressure after Coinbase, one of the most popular exchanges, decided to halt trading in the token.

Leave a Reply

Your email address will not be published. Required fields are marked *