Most long-time crypto skeptics will probably have to change their minds about Bitcoin. Because the oldest cryptocurrency ever has again reached an all-time high. On Sunday, BTC was partly traded at just under $35,000. Most recently, the all-time high of 2017 — $20,000 — was broken in December.
Most traders didn’t expect further developments. Bitcoin kept reaching new heights aided by bullish news of purchases by institutional investors. Companies like MicroStrategy have become increasingly active in the past year to purchase more of the ‘digital gold’. Bitcoin’s market cap is now more than $600 billion, making it more valuable than Berkshire Hathaway, the investment firm owned by prominent Bitcoin critic Warren Buffett.
The way to $20,000 and $30,000 was supported in particular by institutional investors. The purchases from Grayscale and MicroStrategy alone were huge.
The Bitcoin Cryptocurrency Is 12 Years Old
The headlines were just right, as Bitcoin had its 12th birthday on January 3. The Bitcoin network was launched 12 years ago and the first transactions were made. The person/group of people hiding behind the pseudonym Satoshi Nakamoto mined the first blocks of Bitcoin almost alone. In this way, it’s estimated that a total of 1.1 million BTCs fall into his/her hands. The current value of this amount of coins is around $40 billion.
Altcoins Time: Does Ethereum Increase as Well?
In addition to Bitcoin, Ethereum can also benefit from the latest price rally. On Sunday, the ETH rate rose to over $950. The market cap of the blockchain ecosystem is now over $100 billion. Investors are expecting a lot from the year 2021, namely, the next phases of the ETH 2.0 launch, as well as the increasing interest of institutional investors.
While Ethereum is already developing, altcoin investors may have to wait a little longer. A sharp Bitcoin correction may drag them down for a short time before they can recover. However, the long-term charts of most altcoins are quite attractive.
Due to the huge rise in Bitcoins price, less well-known projects are becoming the focus of interest in the retail sector. This was last seen in 2017 when a real altcoin race took place. Some of these altcoins rose in price by several hundred percent per day. In recent years there has been a one-time event when some altcoins generated very good returns. However, the boom like three years ago hasn’t been repeated yet.
Conclusion: The Year 2021 Promises to Be Interesting
The year 2021 promises to be really interesting for crypto enthusiasts. Bitcoin once again reached new all-time highs and is now trading well above $30,000. Institutional investors, who tend to have a long-term perspective, now don’t think about minimal losses in their purchases. Retail traders should always be on guard — the recent Bitcoin price development is huge, but it also carries risks for traders.
What do you guys think about new all-time highs? Feel free to share your thoughts in the comments!