Bitcoin continues to surpass its all-time records and briefly reached $27,500.
Bitcoin surpassed its ATH by $25,000 at Christmas, a day when most institutions and people are not working.
This indicates that its recent all-time record surge probably came from retail investors.
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Bitcoin, the world’s first and largest cryptomony in terms of market capitalization, continued to break all records for high prices.
On December 24 and 25, Bitcoin fluctuated between $23,000 and $24,000, and then was projected beyond another historical high. What is interesting is not that Bitcoin exceeded its highest price again, but how and when it did so.
According to Adam Back, CEO of Blockstream, institutional investors were not responsible for the $25,000 through Bitcoin, but rather retail investors. Back recently tweeted: „So $25,000 * on the 25th, three new ATHs $24.7, $24.8 and $25,000 per day. You think the institutions did this? On Christmas Day? Retail traders did it – only people near a keyboard. On December 25, much of the world celebrates Christmas and businesses close their doors so that employees can spend time with their families and loved ones. Under these circumstances, for Bitcoin to break its record price three times a day and exceed $25,000, individual investors must be responsible. Most institutions simply do not operate on that day.
Increased Interest from a Variety of Sectors
2020 has been a difficult year for the world, but a fantastic year for Bitcoin. At the beginning of the year, BTC was trading well below USD 10,000, and now it seems that Bitcoin is preparing to move closer to the USD 30,000 price range.
Much of this rise in popularity is due to global financial conditions and increased institutional interest. These are correlated as investors look for assets that are safe havens in the midst of financial uncertainty. This year, billions of dollars have been invested in Bitcoin by corporate investors such as MicroStrategy, one of the world’s largest business intelligence companies. MicroStrategy has invested more than $1 billion in Bitcoin. Michael Saylor, MicroStrategy’s CEO, also personally owns hundreds of millions of dollars in Bitcoin. He sees cryptography as a strong protection against currency inflation.
A Changing Environment
Institutions with huge amounts of capital to invest in can radically change the atmosphere around Bitcoin. They also provide a level of assurance to retail investors. When an average investor sees a large company investing hundreds of millions or billions in new assets, it shows the investor that these large organizations have confidence in the asset and the ability to maintain and increase value.
This increased institutional interest has been tremendous for Bitcoin. However, market analysts ignore retail investors only at their peril. The retail industry collectively injects billions of dollars into Bitcoin. As some governments begin to inflate their currencies and suffer greater economic turbulence, we may continue to see retail and institutional investors flocking to Bitcoin.