• Team Sygnum

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.



Disclaimer

This document was prepared by Sygnum Bank AG. This document may contain forward looking statements and may be subject to change. The opinions expressed herein are those of Sygnum Bank AG, its affiliates and partners at the time of writing. The document is for informational purposes only and contains general material. It is for use by the recipient only. It does not constitute any advice or recommendation, an offer or invitation by or on behalf of Sygnum Bank AG to purchase or sell assets or securities. It is not intended to be used as a general guide to investing, and should be used for informational purposes only. When making an investment decision, you should either conduct your own research and analysis or seek advice from an expert to make a calculated decision. The information and analyses contained in this document have been compiled from sources believed to be reliable. However, Sygnum Bank AG makes no representation as to its reliability or completeness and disclaims all liability for losses arising from the use of this information.

69 views