The Bitcoiners and hodlers are especially rejoicing the rebound of Bitcoin’s price against the US Dollar (BTC/USD) as the pair hits yet another new high on December 25. They are celebrating a uniquely profitable year as the Bitcoin price breaks above the US$24,000 resistance on Christmas day and hits an all-time new high of US$24,577.10 (as on Bitstamp crypto exchange). It has been a particularly profitable year as BTC/USD pair has risen by more than 240% YTD (year-to-date).
Christmas Gift for Bitcoiners
As the Bitcoin price broke above the US$24,000 resistance, bullish momentum returned on Christmas and looks rosy for bulls. Before breaking above the strong resistance, the BTC/USD pair repeatedly tested the US$24,000 resistance level today (evident from the data available from TradingView, Coin360, and Cointelegraph Markets.
Though the last couple of days witnessed bearish prognoses, today the Bitcoin price refused to conform to it and shrugged off lows that were taking place because of the legal action against Ripple by the U.S. Securities and Exchange Commission. At press time, Bitcoin price on Bitstamp exchange was hovering around US$24,421.07 with a 24-hour price change of +5.73%.
Cointelegraph Markets analyst Michaël van de Poppe believes that the upward movement of Bitcoin price against the US Dollar was expected because it is only repeating a pattern witnessed in the last few years. He said:“Bitcoin dominance has been topping out in December in the past years. Every year it did. The likelihood of this to repeat itself is significant, especially combining this with the current sentiment on altcoins. Bullish for Q1 2021.”
What’s Next in 2021?
- 2020 was especially a good year for Bitcoin as the mainstream institutional capital started taking interest in cryptocurrencies, especially the largest crypto Bitcoin. Some of the biggest investments came from mainstream companies such as Paypal, Square, MassMutual, MicroStrategy, and many public companies.
CEO and founder of Apifiny, Haohan Xu, has said: “This is only the beginning of mainstream institutional adoption and, in 2021, it will help drive derivatives growth faster.”
- Skew (a leading provider of professional Data Analytics and Trade Execution services for cryptocurrency markets) believes that the Bitcoin options market will exceed US$10-billion in open interest in 2021.
- Investment firm Coinshares’ chief strategy officer, Meltem Demirors, and Pantera Capital’s co-CIO believe that the Bitcoin price against the US Dollar will rise above the US$100,000 level.
- Cryptocurrency exchange OKCoin’s COO, Jason Lau, has said that the Bitcoin price rally in the second half of 2020 was only the beginning of the new highs and it showed what is coming in the future. He believes this rise is happening and will accelerate in the coming future because the institutional adoption of Bitcoin will pick up steam.
- Matthew Walsh of Castle Island Ventures believes that the BTC price will rise more with more regulatory clarity. He said: “Clarity from the SEC on custody under rule 15c3–3 will unlock even greater levels of institutional participation in the industry. A U.S. pension fund will publicly announce a Bitcoin position, and more than one Bitcoin ETF will be approved.”