The flagship crypto s just passed its all-time high, as it breaks a key resistance level above $20,000.
At the time of writing Bitcoin’s price traded at $20,500. Bitcoin is up 6.34% for the day and leads the crypto world in terms of market value that stands about $372 billion.
- Bitcoin is in the midst of an eye-catching rally – it has already gained about 170% for the year and is now trading above $20,000.
- Such outstanding performance has come on the back of leading financial brands taking a greater interest in digital assets, with many hedge fund managers, banks looking to capitalize on the outsize returns in a world of rock-bottom interest rates.
What this means: Investors are going bizarre on Bitcoin on the bias that whenever the U.S stimulus deal is reached, it means more asset bubble for many treasury-backed assets that includes gold, Bitcoin.
What you must know: Recall Nairametrics, some months ago, highlighted some key fundamentals showing that Bitcoin looks more like a bargain to hold.
It should be noted that BTC has a circulating supply of 19 million coins and a max supply of 21 million coins, meaning there are just about 2 million left to be mined.
- Taking into account that about 4 million Bitcoins have been lost forever as a result of BTCs owners dying, and their next of kin not having access to such cryptos, it is fair to say there are only about 15 million BTC presently in circulation to cater for over 7 billion people fighting to have a stake in it.
- As BTC becomes scarce and more popular, it becomes a matter of time for the crypto asset valuation to hit the roof.
- As the general economic law states, ‘when demand is high and supply is limited prices of such products will usually go up’, Bitcoin has established a robust support level at $10,000, defended on several occasions throughout September.