This December has been probably been one of the best months ever for Bitcoin owners as the most popular cryptocurrency has been on a tear for the better part of the month. After running into a bit of a snag in the middle of the month and hitting the wall at around $20.000, Bitcoins has surged again adding around 50% since then and during the last week before Christmas, the so-called Santa rally, The investors are now hoping that a psychological limit of $30.000 per coin can realistically be reached. The fantastic performance of the currency has led to the combined value of all Bitcoin tokens in circulation surpassing half a trillion dollars for the first time in the currency’s history.

Since Bitcoins Market Cap Hits Half A Trillion, Will It’s Price Come Closer To $30,000?

One of the main reasons for this kind of movement is that with most of the traditional markets quiet during the holiday season, Bitcoin has been the only viable investment option for many. The unprecedented surge has left many wondering how long will the spectacular Bitcoin rally last. Some notable investors, like Nigel Green, chief executive at deVere, and a long-time Bitcoin proponent, have decided to get rid of their Bitcoin positions. Green, who sold half of his Bitcoin holdings at around $25.000, explained his move as he felt that the cryptocurrency was reaching an all-time high. He thinks that it’s time to start treating BTC like any other investment, sell high, and re-buy when it dips.

Most of the price surge over the Christmas holidays was driven by retail traders since the traditional markets were closed.

Marc Bernegger, a member of the Board of Crypto Finance Group and one of the first advocates of Bitcoin, thinks that it’s possible that BTC may experience a bit of healthy correction when the traditional markets reopen. He added that the biggest difference between massive short-term price surges over the past years and what’s going on at the moment is that now there are a lot more serious and professional investors involved and that could lead to faster correction and less volatility in the long term.

The next year is expected to bring a fair deal of inflation due to the probable increase in public spending in an effort to mitigate the consequences of the Coronavirus pandemic.

As a result, more and more major Wall Street players are identifying Bitcoin as one of the best hedges against inflation. Plenty of them has already made significant t investments in Bitcoin positions as they prepare for increased money printing that 2021 will likely bring. The latest major investment firm to move heavily on Bitcoin is British Ruffer Investment Management which has both $745 million worth of Bitcoin. That investment alone has greatly contributed to pushing Bitcoin’s value over $20.000.

However, the volatility of the most prominent digital currency will likely rear its head as a result of institutions, regulators, and retail all being massively involved in this market. Just last week, the crypto community was shaken by the news that SEC is suing Ripple, the company behind the XRP token, for breaches in the way it has marketed its currency to retail customers. We’ll likely see more of these kinds of events in the future, disrupting the stability of the crypto market.

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Bitcoins Market Cap Hits Half A Trillion As The Price Comes Closer To $30,000

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This December has been probably been one of the best months ever for Bitcoin owners as the most popular cryptocurrency has been on a tear for the better part of the month.

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Vladimir

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ArmyOfBitcoin.com

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