17.12.202011:07 Forex Analysis & Reviews: Bitcoin overcame the $ 20,000 barrier

Long-term review

Exchange Rates 17.12.2020 analysis

The leading cryptocurrency decided to shake the cryptomarket, surprising with a sharp price growth towards the end of the current year. Bitcoin successfully broke through the level of $ 20,000 for the first time in a long time.

On the evening of December 16, the main digital asset overcame the $ 20,000 barrier for the first time in history. It should be recalled that the last time such action was recorded was in December 2017. After breaking through this round level, bitcoin quickly moved to new peaks. This morning, the cryptocurrency reached its peak values, exceeding the level of $ 22,000.

Exchange Rates 17.12.2020 analysis

There was a cryptocurrency excitement in major digital exchanges such as Binance, Bitfinex, Bitstamp, and Coinbase. The recent price growth of the main virtual asset was noted last Friday, December 11. Based on analysts' observations, bitcoin's price has risen by 14% for the past five days, and by more than 100% since September began.

Experts believe that several factors support the growth of the leading digital asset. According to Nikolai Klenov, a financial analyst at Raison Asset Management, the investors' growing interest in BTC is the reason why it is rising. Many market participants perceive this cryptocurrency as a protective asset, or a kind of "digital gold", preferring it amid inflation of fiat currencies.

Moreover, the influx of large investors into the world market, including well-known corporations, banks and investment funds also contributes to bitcoin's growth. Analysts say that they provided massive fund injections to the indicated cryptocurrency. Experts do not exclude that Bitcoin will grow to $ 25,000 - $ 30,000 in the short term, and then sharply decline on the wave of investors' profit-taking.

From a technical point of view, experts draw attention to the fact that bitcoin rebounded twice over the past few days from a strong resistance level of $ 19,000 - $ 20,000. Experts emphasize that it took this barrier on the third attempt. Therefore, they do not exclude its further growth, but they warn about its possible correction and decline.

By the end of this year, the crypto market recorded the activities of large companies that actively invested in bitcoin. Recently, a large investment fund Ruffer, which has assets worth $ 27 billion, invested $ 15 million in the leading cryptocurrency. American company, MassMutual, followed his example last week, with an investment fund of over $ 235 million. It acquired 5470 BTC for $ 100 million. On another note, experts consider the decision of the PayPal payment service to open access to cryptocurrencies to American customers as one of the key events in the field of digital currencies. It should be recalled that all users in the US can buy and sell digital assets directly through PayPal as of mid-November.

Investors' rising interest in virtual currencies, primarily in bitcoin, supported its upward movement. On this wave, it can be emphasized that the main cryptocurrency has sharply risen. DBS, the largest Singaporean bank, started working with digital currencies this month. The financial institution has launched a service for storing a number of digital assets (Bitcoin, Ethereum, Bitcoin Cash and XRP) and a platform for trading them. Analysts say that this has added popularity to virtual means of payment.

However, there is one problem. Experts warn that we should expect bitcoin's correction in the near future, which can occur early next year or late 2020. Nevertheless, experts are confident that its price will rise again in the long-term. There are all the prerequisites for such a development, so it will easily break current records.

Larisa Kolesnikova,
Analytical expert
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