The Floodgates Are Now Open for Bitcoin
That’s it, we’re finally there!
Bitcoin broke the $20K psychological barrier on December 16, 2020. All the questions about whether Bitcoin had really beaten its All-Time High (ATH) are now a thing of the past.
Now that the $20K has been crossed, the floodgates are open for Bitcoin. Bitcoin has been making history every minute since it broke $20K.
The $21K was a formality, as was the $22K. It had been clear for a couple of weeks that once the $20K was crossed, Bitcoin would move very quickly to the $22K since there was no major resistance.
The Bitcoin price is $22,682 at the time of writing. The $23K could very well be breached during the day at the pace things are going.
All institutional investors want to be part of the Bitcoin revolution now. This increase of more than 16% in 24 hours is once again driven by smart money:
While Bitcoin was struggling to break through the $20K mark yesterday, it was the announcement by Ruffer Investment of a $744 million purchase of Bitcoin made in November 2020 that gave Bitcoin the momentum to break through the $20K mark.
Ruffer Investment holds now 45,000 BTC.
As a result, buy orders have been pouring in. We were then able to witness a great classic since Coinbase was down with its famous message explaining to its users that the platform was experiencing problems with its infrastructure.
For once, Coinbase wasn’t alone in its debacle as Binance also experienced scaling problems as Bitcoin crossed the $20K mark. It’s always surprising that two of the world’s largest trading platforms can experience so many technical problems.
In the wake of this rapid rise in the Bitcoin price beyond $22K, future aggregate open interest has risen sharply to over $8 billion:
This represents an increase of +100% in two months. Investors are increasing their positions in Bitcoin. More and more players come to participate in this meteoric rise in the Bitcoin price.
The Chicago Mercantile Exchange (CME) now holds 1.37 billion dollars of these contracts. This is proof if proof were needed, of the growing interest of institutional investors in Bitcoin.
In the coming days, this movement can be expected to intensify. Seeing Bitcoin fetching the $25K by the end of 2020 is clearly not a utopia. We are not there yet of course, but it is the next target in my opinion.
The most interesting thing about the current rise in the Bitcoin price is that retail investors haven’t even hit the market en masse yet. The finance specialized media are slowly but surely starting to include coverage of Bitcoin in their editions.
However, the mainstream media has not yet started to talk about Bitcoin again.
The Bull Run that will take place in 2021 will start with a Bitcoin priced above $20K. In 2017, when the Bull Run actually started, the Bitcoin price was below $5K. The rest you know. The Bitcoin price had quadrupled in a few weeks to reach $20K.
We will experience a similar situation again in 2021 with $20K as a baseline. A 4 or 5 times increase in the Bitcoin price is a target more relevant than ever in 2021. The $100K is therefore more than ever within reach for Bitcoin given the fundamentals that we can observe now.
As a Bitcoiner, your situation is ideal right now. The best thing you can do is to stay strong: continue to HODL no matter what.
There is currently a liquidity crisis on the trading platforms since nobody wants to sell their BTC anymore. Everyone understands how valuable they are. Don’t make the mistake of being among the first to give in. In the hours to come, a correction does not seem to be in order.
If there is a correction by the end of the month, it is more likely to occur on weekends when order books are generally thinner. The date of December 25, 2020, is also to be remembered since futures and options are about to expire.
In case of correction, the best thing to do will be to behave like whales or institutional investors. This clearly means that you should switch to “buy the dip” mode.
Continue to have full confidence in Bitcoin, and you will be among those who will make the most of its revolution. Now that the floodgates are truly open, the best is yet to come. It’s up to you to be smart to make the most of Bitcoin.
Stay strong, Stay a Bitcoin HODLer.