Crypto market surges as Bitcoin pushes into uncharted territory
It’s beginning to look a lot like Christmas in the crypto market, as traders are gifted with fresh Bitcoin all-time highs after a turbulent year.
The leading crypto smashed through the record of $20K on Wednesday, exactly three years since the last all-time high in 2017. Then it sprinted into uncharted territory to hit new records above $24K. Yet 2020 has seen Bitcoin jump more than 230%, more than any other asset class. Why did this happen, and what could we expect to see from Bitcoin in 2021?
Litecoin, Dash, and Binance Coin have also made double-digit gains in the dizzying rally, which comes amidst a string of positive headlines. PornHub made cryptocurrency the default payment option on Tuesday, the Federal Reserve committed to additional stimulus on Wednesday, and Elon Musk whipped up a social media frenzy on Sunday by asking MicroStrategy CEO Michael Saylor how to buy large amounts of Bitcoin.
This Week’s Highlights
- Guggenheim say Bitcoin is worth $400K
- CME to launch ETH futures
Guggenheim say Bitcoin is worth $400K
Bitcoin’s moon mission is being led by some of the biggest players in global finance, who have made their own forecasts for future Bitcoin prices.
British investment manager Ruffer revealed Wednesday it has obtained exposure to more than $700 million of Bitcoin, followed by news that billion-dollar investment firm Jefferies is cutting gold from its portfolio in favor of cryptocurrency.
Amidst this institutional buying, Scott Minerd of global investment firm Guggenheim made a shocking prediction, telling Bloomberg TV on Wednesday afternoon that the firm’s fundamental analysis finds Bitcoin to be worth $400K.
CME to launch ETH futures
While Bitcoin is busy making new records, little cousin Ethereum is currently trading around $600, down around 50% from all-time highs.
Yet recent developments suggest the second-largest cryptocurrency could soon catch up. Grayscale’s Ethereum-based trust has been growing in popularity, and Chicago Mercantile Exchange (CME) is set to launch ETH futures contracts in early February.
This growing institutional interest follows bullish predictions from analysts including Raoul Pal, who has said the Ethereum network could eventually be worth more than Bitcoin.
The week ahead
Now that Bitcoin has set a fresh all-time high, the price is cruising through open air as increased media attention brings new buyers into the market.
Moving towards Christmas, we could see more bullish momentum push Bitcoin to $25K, with price supported by news that lawmakers have agreed on a $900 billion relief package, and growing optimism around the vaccine rollout
Yet while the macroeconomic climate is supportive, Bitcoin could still be impacted by regulatory action, with FinCEN proposals for new KYC rules still threatening to put a damper on bullish price action.