Bitcoin rises in price and broke through $ 23 thousand.
By: Bitxmi Pte Ltd
Tags: Bitxmi, Bitcoin, Indiawantscrypto, Investment, Btc

Kataryna Habeliia December 17, 2020

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Table of Contents

Bitcoin rose in price and broke through $ 23 thousand for the first time.

The cost of the first cryptocurrency has reached such a mark for the first time in history. It began to grow actively after overcoming the important level of $ 20 thousand. The reason could be several factors.

On December 17, on the Bitxmi crypto exchange, the bitcoin rate for the first time in history reached $ 23.114 thousand. The cost of the first cryptocurrency began to rise sharply on December 11 from a local minimum of $ 17.5 thousand. by 18%.

Growth may be due to liquidation of short positions on exchanges

Growth accelerated after breaking the all-time high of $ 20,000. This may be due to the multimillion-dollar liquidations of short positions of traders on crypto exchanges. According to the bybt.com service, over the past 24 hours, positions of 78.9 thousand traders were forcibly closed for over $ 1.11 billion. Almost $ 967 million of them fell on transactions with bitcoin.

With a sharp rise in the exchange rate, the exchanges begin to forcibly close the contracts of those who were short. This is a standard mechanism — in order not to lose money, exchanges liquidate short positions of clients and take the funds left on security for themselves. This dramatically changes the ratio of buy/sell transactions in favour of the former, which causes a sharp rise in the value of the asset.

Bitcoin Gains 20,000 Thanks To The Chicago Board Options Exchange

Yesterday, December 16, the price of bitcoin exceeded $ 20 thousand amid several positive news at once. It became known that in 2021 the Chicago Board Options Exchange (Cboe) will launch an index for cryptocurrencies. The tool will show the dynamics of the price of digital assets and historical data.

No less important news came from another exchange in Chicago — CME. She announced the addition of Ethereum futures from February 8, 2021. The instrument is now awaiting the assessment of the financial regulator. Cryptocurrency futures first appeared on CME on December 18, 2017. The exchange added contracts for bitcoin the next day after its rate set a previous all-time high near $ 20,000.

Also yesterday, the investment fund Ruffer Investment Company announced the purchase of bitcoin (Read here). Initially, it was reported that the company allocated funds from its separate fund for investing in cryptocurrency about $15 million. Later, a representative of Ruffer clarified that the company became the owner of bitcoins worth over $ 740 million.

Earlier, Scott Minerd, investment director of Guggenheim Investments, with $ 20 billion in assets, called bitcoin “grossly undervalued” at current price levels. According to Minerd, bitcoin should cost about $ 400 thousand. This conclusion was made based on the limited emission of cryptocurrency and its value relative to gold.

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