Bitcoin (BTC) has had a historic week after conquering several key levels that have placed it very close to reaching its all-time high.
TOP Bitcoin News (BTC)
The last week in the crypto market has been particularly busy for Bitcoin and, therefore, today we will tell you the most outstanding news so that you do not lose sight of them.
Bitcoin, the climber
Bitcoin put on all the sports gear to scale price levels this week. We started the week with a crypto that had a valuation of $ 15,984, how did it possibly scale to $ 18,063? That is the question that we will seek to answer and the answer that you should keep in mind for next week.
On Monday we started with good news for humanity: Moderna Labs’ vaccine announced positive results from its COVID-19 vaccine.
The news was a boost for the stock market, but also for Bitcoin, in fact, this boost was the one that brought Bitcoin to $ 16,788 on Monday.
Did Bitcoin settle for that? No, on Tuesday the leading crypto rose another 5.33% and stood at USD 17,680, achieving a three-year high and an all-time high for its market capitalization that stood at USD 330 billion.
Again we wonder, did he settle for that? And, once again, the answer is no. On Wednesday Bitcoin received another boost that took it to USD 18,476, however, it did not resist and fell back to levels close to USD 18,000.
Is a bubble forming? Is the Law of Supply and Demand explained with Bitcoin?
As we have just seen, this week Bitcoin received a series of boosts that took them to levels that we had not seen in three years. Therefore, it is normal for the crypto community to start asking what is behind this boost.
Especially when we take into account those crypto investors who lived through the misfortune of 2017.
This week Chainalysis published an investigation that produced the Law of Supply and Demand as an explanation. Basically Chainalysis asserted that “the price of Bitcoin is increasing because the demand for BTC is increasing at a time when there are relatively few Bitcoins available to buy.”
According to the research, the amount of Bitcoin held in illiquid wallets is much higher than in 2017, representing 77% of the 14.8 million Bitcoins mined.
Consequently, only 3.4 million Bitcoins are available in the market and the demand seems to continue to increase.
Okay, but could it be possible that a bubble is forming? This week we reported on CryptoTrend that, although Bitcoin’s current bull run appears to be very different from 2017, there were two indicators that were causing concern: the Fear & Greed Index and the Mayer Multiple.
In particular, the Fear & Greed index indicated, and still does, that market sentiment is extreme greed. Additionally, the Mayer Multiple, as we explained at the time, stood at 1.76, very close to a worrying level of 2.
What are the projections for BTC?
The excitement in the crypto market has permeated investors from the traditional world and has given much to talk about.
Tom Fitzpatrick, Managing Director of Citibank, predicted that the price of BTC may exceed $ 318,000 in 2021 in a note that was leaked this week.
In that note, Fitzpatrick called BTC the “new gold.” In this same vein, BlackRock’s Rick Rieder assured CNBC that Bitcoin could replace gold.
Also this week, Mike McGlone, a Bloomberg strategist, noted on Twitter that Bitcoin is on its way to a $ 1 trillion market capitalization.
According to McGlone, USD 20,000 will be the main obstacle that Bitcoin will have to overcome to reach a market capitalization of USD 1 trillion.
Regarding the market capitalization of Bitcoin, this week the leading crypto reached its all-time high and surpassed Mastercard, PayPal, Nvidia and even Disney in this metric.
Bitcoin futures open interest on CME hits record high
Chicago Mercantile Exchange (CME) saw an increase in open interest in Bitcoin futures, reaching an all-time high of $ 976 million.
This translates into an increase in institutional capital inflows to Bitcoin. And it turns out to be a positive for Bitcoin because it could be the next boost for crypto.
You may not believe it, but, the price of BTC touched $ 82,000
This week something quite strange happened in the crypto market that took the price of Bitcoin to $ 82,000 for a second.
As we reported on CryptoTrend, based on the BTC / USDT chart on Binance, an extremely long wick appeared at 1am ET on November 17. Bitcoin started its green candle at $ 16,626, but then took off at $ 82,000 and closed after 60 minutes at $ 16,635.
Apparently this was the only trading pair that was affected. But what happened? The answer is quite inaccurate and, for the moment, remains a mystery.
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