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Bitcoin (BTC) is expected to break out of its current trading range and reach $30,000, according to analysts. However, they also note that several factors could potentially trigger volatility in the near term, such as oil production cuts from OPEC+ members and a potential US dollar rebound. BTC is currently trading around $27,000, and while some traders are optimistic about a breakout, others are eyeing targets as low as $24,000. Meanwhile, Bitcoin holders are said to be “comfortably in profit” according to the Net Unrealized Profit/Loss (NUPL) metric. However, most investors remain risk-off on Bitcoin, except for large BTC “whales” who continue to accumulate.
This article originally appeared on cointelegraph.com
It has been a rollercoaster week for Bitcoin, with the leading cryptocurrency experiencing both highs and lows. Despite hitting a new all-time high of $31,000 on January 2, the digital asset did not rest on its laurels, as it continued to soar to new heights, ending the week at over $40,000. Here are five things to know about Bitcoin’s latest developments:
1. Bitcoin broke its all-time high: On January 2, Bitcoin surged to a new all-time high of $31,000, doubling its value in just a month. The rally was driven by institutional investors getting involved in the cryptocurrency market. However, this was not the end, as Bitcoin continued to rise throughout the week, ultimately reaching an all-time high of over $40,000.
2. Institutional investors continue to get involved: The surge in Bitcoin’s price was largely due to institutional investors getting involved in the cryptocurrency market. The likes of Paul Tudor Jones, BlackRock, and Square have all invested heavily in Bitcoin, leading to increased adoption of the digital asset.
3. Bitcoin’s market capitalization hits $700 billion: Bitcoin’s rise to over $40,000 led to its market capitalization hitting $700 billion, overtaking the likes of Visa and Mastercard. This further demonstrates the growing acceptance of Bitcoin as a legitimate asset class.
4. Cryptocurrency exchanges struggle with demand: As Bitcoin continued to surge, various cryptocurrency exchanges struggled to keep up with the demand. Coinbase, one of the largest cryptocurrency exchanges in the world, experienced several outages and connectivity issues as users rushed to buy Bitcoin.
5. Increased scrutiny from regulators: As Bitcoin continues to gain mainstream acceptance, regulators are starting to take notice. The Financial Conduct Authority (FCA) in the UK recently banned the sale of cryptocurrency derivatives to retail customers, citing the high risk and volatile nature of cryptocurrencies.
In conclusion, $31,000 was not the end for Bitcoin, as the digital asset continues to rise to new heights. Institutional investors continue to drive adoption, while increased scrutiny from regulators highlights the need for smart regulation in the cryptocurrency industry. Overall, the future looks bright for Bitcoin and the wider cryptocurrency market.
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