Bitcoin (BTC) continues its blistering holiday weekend rally, surpassing $27,000 on Dec. 27. What’s more, the market capitalization of Bitcoin has surpassed half a trillion dollars for the first time ever.
BTC/USD hourly candle chart (Bitstamp). Source: Tradingview
Bitcoin market cap breaches $500,000,000,000
The new record-highs for Bitcoin come less than three days after breaking resistance at $24,000. This also means that BTC price has now doubled over the past two months after gaining nearly $10,000 in the month of December alone.
Bitcoin’s market capitalization is also now over $510 billion, which puts it just under Warren Buffett’s Berkshire Hathaway, the tenth-largest company in the world. This comes less than a day after surpassing Visa’s market cap.
As Cointelegraph reported, this weekend’s surge has put the price of Bitcoin above the mean trend line of the popular stock-to-flow model (around $24,900), which forecasts a $100,000 target by December 2021.
At the same time, the current bull cycle appears to be different and more sustainable than in 2017 with many traders expecting more upside over the coming months. The reasons for this include a frenzy of institutional buying, stronger fundamentals, less available supply on exchanges, and still relatively little interest from retail buyers.
Google searches for “Bitcoin.” Source: Google Trends
However, this doesn’t rule out the possibility of major pullbacks in the near term, particularly as BTC price appears to be steaming toward the next psychological resistance at $30,000.
“Vertical moves often end in a swift correction (remember Summer ’19)? Those swift corrections are made for the establishment of a sideways range,” warned Cointelegraph Markets analyst Michael van de Poppe on Dec. 27. He added:
Don’t get chopped out of a correction. The bull market will last for a longer period. Have a longer horizon. Title: Bitcoin price blasts past $27K — BTC market cap now over half a trillion dollars
Sourced From: cointelegraph.com/news/bitcoin-price-blasts-past-27k-btc-market-cap-now-over-half-a-trillion-dollars
Published Date: Sun, 27 Dec 2020 07:18:48 +0000
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