After surpassing USD 20,000 for the first time since December 2017 yesterday, bitcoin (BTC) advanced by another USD 2,000 in less than a day. While BTC dominance increased, the top coin is not the best performer in the top 10 club today. (Updated at 05:56 UTC: two last paragraphs have been added.)
At pixel time (04:47 UTC), BTC trades at USD 21,787 after it touched USD 22,000 earlier today. The price is up by more than 12% in a day and 18% in a week. It rallied by 31% in a month and 225% in a year.
BTC price chart:
Other top coins are up by 3%-10% in the past 24 hours.
Meanwhile, BTC’s dominance, or the percentage of the total market capitalization, surpassed 64% today. In November, it still was at 60%.
“Bitcoin’s ascent above USD 20,000 is yet another milestone in what has been an epic year for crypto,” said Paolo Ardoino, Chief Technology Officer at the Bitfinex exchange.
“But the main story is not about speculation or trading. Bitcoin represents a monumental technological shift, the consequences of which are only just beginning to be seen. Critics should take heed of the quiet dedication of those building layers upon this technology that will change the very nature of money by the end of this decade.”
The “price will now go from linear to parabolic” in part because retail investors have so far largely been “out of this rally,” Kay Van-Petersen, Global Macro Strategist at Saxo Capital Markets Pte in Singapore, told Bloomberg.
Meanwhile, according to Dave Weisberger, Co-founder and CEO of trading software provider CoinRoutes, USD 20,000 might form a new support level “unless there is actual negative news.”
“Bitcoin’s strength relies very much on fiat money being copious and unrewarding. If central banks tighten monetary policy and/or governments take action to reduce deficits, the attractiveness of Bitcoin as an inflation hedge and source of scarce yield could decline rapidly,” Frances Coppola, author of “The Case for People’s Quantitative Easing,” told Bloomberg.
Find more insights and forecasts about this rally here: The Big Comeback of 2020: Bitcoin Revisits USD 20,000