A holiday surge has driven Bitcoin’s value which has now hit $28,220.50 and a market cap of $524.65 billion.
Bitcoin’s Value Hits $28,220, No End in Sight
The 2017 Bitcoin fiasco is far from sight and even though fears that BTC may once again take a precipitous plunge the currency is in an upswing. Bitcoin’s valuation is now fast-approaching the $28,500-mark and there seems to be no stopping it.
The world’s most popular cryptocurrency has surpassed $20,000 in price earlier on December 16 to continue its accelerated rally to the top, breaking crucial thresholds within a day, with its market capitalization hitting $524.65 billion as of right now.
At the time of writing, 06:32 am ET, Bitcoin stands at $28,220.50 in what is its biggest spike in valuation on record. Bitcoin’s worth has increased 13.87% over the past 24 hours and over 20.25% in the past seven days, maintaining $1.47 billion in liquidity.
The currency has hit a 63.84% rally over the past month and an estimated 277.65% increase over the past 12 months. Analysts expect Bitcoin’s price rally to continue well through the end of the year, with the currency potentially hitting out $30,000 and then moving into even bigger numbers’ territories.
However, this rally is happening over the holidays on thin volume, and the New Year’s, and even Monday, could quickly upset much of the progress, sending volumes in free fall. However, as long as there is interest in Bitcoin, its growth should be sustainable, but a breaking point is in sight.
Unlike other currencies, which are regulated by central banks and have a strong financial basis, notwithstanding inflation, Bitcoin’s fluctuations can see tremendous depreciation of the currency, sending it well below its current volume.
Bitcoin’s Rally, Boosted by Traditional Investors
In 2017, when Bitcoin almost hit $20,000, the currency ended up crashing to $3,600 disappointing crypto hopefuls once again.
However, things seem to be different this time around. Many central banks talking about central bank digital currencies or CBDCs, considered a high-security digital instrument, with the only drawback being lack of decentralization.
Earlier this year, PayPal announced support for Bitcoin and a number of other cryptocurrencies, allowing merchants worldwide to benefit from these digital assets. The feature is now live in the United States, but it will expand to other markets starting in 2021.
Meanwhile, institutional investors such as Anthony Scaramucci from Skybridge Capital believe that Bitcoin is only getting started. In fact, many believe that it’s thanks to big investments from traditional financial players that Bitcoin’s current valuation is through the roof.
Scaramucci’s Skybridge Capital invested $25 million in December along with MassMutual, which laid down another $100 million this month. While this is still a drop in the sea, interest and support from traditional investors does add to the value of Bitcoin, which relies on public endorsement and a collective belief in the cryptocurrency’s potential.
While Bitcoin’s price value has continued to climb, Ripple’s XRP has been embroiled in lawsuits, tanking its value down.