The rate of Bitcoin crossed $29,000 this Wednesday night for the first time since its creation, pushing deeper into new territory.
With the day’s passing, the leading cryptocurrency renewed its rapid growth tendency after seeming to be taking a break on Monday and Tuesday following a record rally over the last weekend.
BTC price hit a high of $29,279.06 before dropping. The price of Bitcoin has now increased by more than 320% year to date and undoubtful prospects for $30,000 in the hopes of holders of the cryptocurrency.
“If the expected wave of further retail investment materializes, I would expect Bitcoin spike above $30,000 as the new year settles in,” Denis Vinokourov, who is head of research at Brokerage Bequant.
Institutional investors are thought to be pushing this record-setting rally. A few of them are: Skybridge Capital (investing $25 million in December); MassMutual (with a $100 million investment in December); and Guggenheim (that put up to 10% of its $5 billion macro fund).
Having the end of 2020 insight, undecided fund managers may also purchase Bitcoin so they could brag next year about being intelligent enough to hop on the BTC train in 2020. This is commonly called “window dressing” on Wall Street.
Furthermore, the U.S. Federal Reserve, as well as other central banks, has engaged in money printing with no remorse, trying to counter the worst economic consequences of the ongoing pandemic, while sitting U.S. President Donald Trump has been battling Congress to issue bigger stimulus checks. These developments are perceived by many as potential catalysts for inflation and bad for the rate of the U.S. dollar, both of which could be an additional boost for Bitcoin.
