Bitcoin price in the last 24 hours experienced an impressive run that took it to the near $20,000 all-time high price, the market cap has reached $300 billion. Just as expected, its market cap was very dominant, controlling over 60% of the total cryptocurrency market cap. The recent run did not just set a new yearly record but got the digital asset listed among the list of 20 major assets in the world. Though this is good news to investors, an expert believes that the price has a good reason to rise, but has failed to set proper supports.
Bitcoin Price Surge Details
Bitcoin price currently hovering around the $15,854 price zone at the time this article was being written, staged a 6.62% move in the earlier hours of the day to reach a price point of $16,473. The price has made over 300% gain since its yearly low to record a yearly high. This increases the possibility of the digital asset closing a CME gap anytime soon.
Interestingly, experts hold the view that the Bitcoin price has a good chance of trading over the $17,200 price point if it manages to close the CME gap. The run of Bitcoin has positively affected other altcoins with the likes of Ethereum and Chainlink recording a weekly growth of 5% and 23% respectively. The Bitcoin market capitalization which was hovering around $300 billion and conquered 65% of the total market cap moved the digital asset into the list of first 20 major assets. This makes Bitcoin the first and only cryptocurrency on the list.
As investors are excited about this feat, an expert believes there is a cause for concern. According to a Bitcoin analyst and contributor, Michael Van De Poppe, there is no correct support for the current Bitcoin price. He pointed out that the Bitcoin price lacks volume to make it retain its feat making a potential correction inevitable. Most Importantly, the Greed & Fear index is at a record high since 2019. According to him, a correction is more likely to occur than a move upward when the Fear & Greed index reaches over 80 based on previous records.
Possible Reasons for the Recent Surge
The reason for the recent Bitcoin rally is highly linked to the announcement by PayPal about giving cryptocurrency payment access to 26 million merchants worldwide. Also, the recent reduction of the block mining reward from 12.5 BTC to 6.25 BTC in the third Bitcoin halving event technically left supply in the hands of the few who can make enough profit to cover their losses. In these cases, supply is reduced and the increasing demand pushes the price up.
Some of the major stocks like the S&P 500 that staged an impressive run following the US election results are currently struggling as the 150,000 per day COVID-19 infections have affected confidence in the economy. The other factors that determine the Bitcoin price seem to be strong enough to make the new round of COVID-19 infections not visible on its price.
Author John K. Kumi