Bitcoin (BTC) has had a spectacular year amid a struggling global economy. The digital coin has embarked on an insane rally since it broke past the psychological $20K level for the first time on Dec 16.
The holiday season has seen the BTC price climb as high as $28K and form a new all-time high near $28,360 before correcting lower. This latest milestone came after the world’s leading cryptocurrency touched $25K on Christmas day and surged higher as buyers came in.
Bitcoin’s market cap has now surpassed the $500 billion mark following the recent meteoric rise, exceeding that of financial services giant Visa ($460 bln).
Bitcoin’s speedy rise from below $20K just a few days ago to hit highs above $28K now means that the renowned cryptocurrency has seen an unprecedented increase; its value has witnessed a 270% jump in 2020.
BTC Price Sees Longest Winning Run Since 2019
As of the time of writing, BTCUSD is up just above 1% at its price of $26,290. This remarkable price uptick came following a late December tear that saw the flagship crypto add almost 50% to its value since Dec 16.
BTCUSD Chart By TradingView
While explaining what fuelled the recent record run that marks the longest winning run since 2019, Marc Bernegger, a member of the Board of Crypto Finance Group, told Forbes:
“The massive price increase of bitcoin during Christmas is mainly driven by retail traders as traditional markets are closed. I would not be surprised to see a healthy correction when these markets open on Monday.”
Despite those predictions, bitcoin has gained strength since facing a rejection above $28K earlier today and is likely to continue higher towards the $28K and $28,500 levels. Some investors are even eyeing the psychological $30K level, which doesn’t seem too far a stretch given the mammoth rally witnessed over the past few days.
Despite the overwhelming optimism among crypto investors, Anthony Scaramucci, Skybridge Capital’s founder, is urging people to watch out.
In an interview with CNN Business, the CEO, who recently launched a BTC fund for his company’s institutional investors, advised traders to remain cautious due to Bitcoin’s volatility.
BTC Primed for Uptick as Altcoin Rally Stalls
Despite witnessing several rejections, the strength bitcoin has flashed since it peaked above $28K is impressive. After forming a new ATH, the leading crypto’s turbulent price action has proven beneficial for altcoins, with ETH shooting past $700 and taking most other smaller crypto assets with it.
However, as bitcoin’s strength mounts, smaller altcoins seem to be seeing some stagnation in their uptick. This scenario could indicate that the king coin is bound to see a continued upside, further bolstering the case for a surge toward $30K in the near term.