KEY POINTS
- Bitcoin regained the $ 19,000 level on Monday
- More public companies are buying Bitcoin
- Still, there are many vendors near the previous peak of Bitcoin
With Bitcoin recovering the $ 19,000 position, analysts anticipate one final push that would allow the dominant cryptocurrency to surpass $ 20,000 in the coming weeks.
“We have seen a big move up over the weekend, with MicroStrategy’s efforts to increase Bitcoin holdings by several major players bringing with it fresh optimism. Our belief is that we will see a $ 20,000 cut in the coming weeks,” Matthew Dibb, the chief executive officer of Stack Funds, told Coindesk.
Bitcoin closed Monday at $ 19,272 in another wildly volatile day for Bitcoin. It marked the second straight day that the benchmark ticket closed above $ 19,000, five days after that support was cut.
The recent downside is completely normal during bull runs as a way to recharge before a larger ascent, Delphi Digital noted in a report. The recent downturn on December 1 reminded someone of the downside in February 2017, when Bitcoin briefly peaked at $ 1,200, only to fall 20% thereafter. That decline was short-lived, however. The dominant cryptocurrency went up to just below $ 20,000 by December of the same year.
The current rally interval seems to be just a rest period before resuming. The big move over the weekend was due to companies like MicroStrategy increasing their Bitcoin holdings, Dibb said. The billion-dollar company has raised $ 650 million through higher convertible note sales to fund Bitcoin purchases.
Another public company, high-profile insurance company MassMutual, recently announced that it has purchased $ 100 million worth of Bitcoin. While the amount is only a drop in Mass Mutual’s $ 235 billion stash, it’s worth noting as it comes from a 169-year-old company. “In the business of risk measurement, it could have an external influence on Bitcoin’s perception among mainstream investors,” Coindesk added.
It’s anyone’s guess as to whether or not Bitcoin will go above $ 20,000 due to record numbers of sellers at the $ 19,000 level. According to Patrick Heusser, head of trading at Crypto Broker AG, the campaign could remain difficult to capture. “The summit is still kept with a lot of sale orders, possibly from miners,” he told Coindesk.
Another factor contributing to the downturn is the fact that the asset management company Grayscale, where institutions invest, will close over Christmas. With no buy-in from institutions, it will be interesting to see how the rest of the market will do towards the end of the year.
