Sygnum Market View – 18 December 2020
Bitcoin reaches all-time high
In for the long haul
After reaching a previous all-time high on November 30th and December 1st, Bitcoin is now trading today around $23,000 and has surpassed its previous peak price. While volumes have not yet matched November's record figures, it is noteworthy that on-exchange balances have not significantly increased despite the bull run. This is an indication that buyers are withdrawing their newly purchased digital assets to alternative storage solutions, indicating that they are in for a long ride with no interest in short-term profit taking.
The current bull run is significantly different from the rally that pushed Bitcoin prices to an all-time high in late 2017. The driving force and the key narrative these days is institutionalization. Kicked-off by payment company Square, who announced an investment into BTC in early October, a wave of asset managers, banks and hedge funds have publicly announced their commitment towards digital assets. The latest new-joiner to the digital asset club is UK-based investment manager Ruffer, who announced that it bought £550 million worth of BTC in November.
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