It took only one day for the most popular cryptocurrency, Bitcoin (BTC), to rise from $14,000 to over $15,000, the first time since January 2018.
At 16:03 UTC, BTC was trading at $15,042 USD and rose 8% in 24 hours and 12% in one week. The BTC has increased by 40% in one month and 60% in one year. Today, it must jump 30% to reach its historical high of $20,000 reached in December 2017. Meanwhile, the other cryptos in the top 10 club are up 4-11% today.
“Bitcoin is the big winner in the current macroeconomic context,” Anthony Pompliano, co-founder and partner of crypto investment firm Morgan Creek Digital Assets, told Reuters. “As we saw at the end of the 2008 liquidity crisis, inflation hedge assets are doing very well when the Fed intervenes with quantitative easing”.
As reported by Cryptonews.com earlier in the day, according to Northman Trader founder Sven Henrich, as long as the BTC can stay above the break-trend line, it has “a significant higher technical margin”.
He added that “a real test for the BTC as a protection against currency destruction” would be to see if Bitcoin and shares decoupled from each other. Traditional markets may struggle during the next few weeks but if Bitcoin can show that it can maintain this upward trend, there is no telling when it will stop.
“For example: a drop in stocks as the BTC moves towards the 17K technical target. This could justify the argument,” Henrich said, adding that “we will probably know more about this front in the next three months or so”.
Mike McGlone, a commodities strategist at Bloomberg Intelligence said the BTC’s previous resistance at around $10,000 could rise to $20,000 by 2021.
“Some supply leaves demand as the main price measure, and most indicators remain positive,” he said. In October, he said that “Bitcoin is on track to reach $100,000 by 2025”. We will see if that number can’t be reached even quicker.