- Bitcoin trades at $40,000.00 on Thursday for the first time in history
- Bitcoin’s new all-time high comes hours after the digital asset blew past $38,000.
- This marks the fourth time in 2021 the leading crypto is pushing past its all-time high.
- What is the next stop for Bitcoin in Q1 of 2021?
Bitcoin continues its wild start to the new year with yet another all-time high. The fourth in the opening week of 2021. On Thursday, January, 7th Bitcoin set a new all-time high of $40,365.00 before briefly retracing back to $39,071.
Over the last 24 hours, Bitcoin is up 13%. Yesterday, bitcoin passed $36,000 and $37,000 for the first time before rocketing today past $38,000 and now $39,000 and hours later – $40,000.
At this point, the most prominent digital asset has climbed more than 820% in the last year. Bitcoin has rallied from less than $4,000 in March 2020 to tourch $40,000 today.
Possible Reason Behind Bitcoin’s Surge?
This latest surge in crypto markets has taken place amid rising institutional interest. In the last 12 months, there have major investors pumping millions of dollars into the digital asset industry.
As Bitcoin continues its remarkable bull run, some analysts have pointed to a similar run of events in 2017. While bitcoin claimed to nearly $20,000 in December 2017, it didn’t stay there long. Almost as quickly as it rises it plunged, wiping out the significant value in a matter of days.
We’re witnessing an event that is very similar to December 2017, but different in the driving force. Bitcoin’s most recent rally has been credited to institutional interest, something the number one Digital asset lacked four years ago.
There is hope that these new, much more feasible conditions would not only sustain its recent gains but fuel more gains in the coming days.
At the end of 2020, it was reported that 29 institution investors held as much as 1.1 million Bitcoin or over $30 billion (or approximately $40 billion by today’s trading value).
On the Flipside
- Major crypto markets have joined Bitcoin in its spectacular rally.
- Among them is Stellar. Today, Stellar’s XLM Token rallied to a 2-Year high.
- In the last 72 hours, the coin has recorded gains of more than 110 percent. XLM now trades at $0.34 per coin.
- Similarly, Maker’s MKR tokens surged to a 2-Year high as DeFi marks exceptional growth.
Where’s the Next Stop for Bitcoin?
Analysts have analysts predicted the possibility of Bitcoin trading at a much larger value than it does currently. A recent JPMorgan Chase report indicates that Bitcoin could trade as high as $146,000 if investors flock to the cryptocurrency as a safe-haven asset.
For the nearest future, what is the most reasonable price for Bitcoin? In its recent price rally, Bitcoin has defied all previous speculations from analysts.
After breaking through $36,000 analysts advised that holders prepare for a price drawback. Bitcoin reacted by pushing the price even further.
With that, it’s still a possibility for Bitcoin to break even $50k before the end of January. The next couple of days would be interesting for the crypto markets.