Despite the sharp pullback last week, Bitcoin price looks on track to post its highest-ever monthly price close
Despite last week’s sharp drop, Bitcoin price is on track to post its highest ever-ever high monthly close, recovering more than 50% of its decline in the days since.
Despite the sharp pullback last week, Bitcoin price looks on track to post its highest-ever monthly price close
At press time, Bitcoin is trading around $ 18,600 on major exchanges. This is significantly higher than the peak end-of-month price of around $ 13,880 observed on December 31, 2017. Furthermore, if based on historical data, the imminent record close is likely. is the sign of a stronger bull run.
Bitcoin surged almost 27% in April 2017, toppling the previous monthly closing record of around $ 1,150 achieved in November 2013. This was followed by a spike to nearly $ 20,000 in December 2017. Strong rallies have been witnessed after bitcoin recorded its monthly close in January and October 2013.
Analysts are optimistic about the longevity of the ongoing bull market, with some pointing to $ 36,000 as the level to watch once the immediate psychological resistance at $ 20,000 is extended.
Factors deemed responsible for the recent 8-week rally from $ 10,000 to $ 19,400, such as increased institutional participation, demand hedging due to a sell-off of The dollar, the ability to increase inflation and seek returns along with a stockpile of debt with record negative yields globally, is expected to further drive returns in cryptocurrencies.
According to JP Morgan analysts, the gains are mainly based on continued institutional participation. If the flow into the Grayscale Bitcoin Trust weakens, the cryptocurrency could suffer if traders follow the momentum continues to step back, analysts wrote in a Nov. 27 note, adding that the outflow A decline would undermine the argument that institutions are starting to prefer bitcoin over gold long-term investment.
Bitcoin has outperformed gold this year. While the top cryptocurrency is up 158% year on year, gold is up just 17%. The two assets have diverged this month, with bitcoin up more than 30% and gold down 5.5%, the highest monthly decline since November 2016.
Meanwhile, global stock markets are on track to hit a record month with the expectation that a potential coronavirus vaccine will lead to a rapid global economic recovery next year. Bitcoin needs to gain gains amid a potential stock sell-off to reinforce its appeal as digital gold.
You can see the BTC price here.
Read more:
- Bitcoin Price Breaks $18.400 As Rebound Continues While Mining Difficulty On The Network Rose By 8.9%
- JPMorgan Chase & Co: Bitcoin Price Recent Tumble Cleared Some Speculative “Froth” But Further Declines Remain Possible