Bitcoin exchange rate (BTC) cracks US $ 25,000 — these are the reasons
Tags: Bitcoin, Blockchain, Cryptocurrency, Btc, Finance

The Bitcoin price has not only reached a new all-time high but has also cracked the psychologically important mark of 25,000 US dollars. Even on the otherwise rather quiet public holidays, where there is little trading, the Bitcoin price can no longer stop. Why the pressure to the north is currently so high.

In the morning hours of Boxing Day, the time had come. For just a few seconds, the Bitcoin price briefly touched the $ 25,000 mark. Immediately afterward, the price fell slightly and is now at $ 24,940 at the time of going to press. An impressive plus if you consider that the price was still hovering around 18,000 US dollars at the beginning of December. In the second half of December, the Bitcoin price started again for the final Christmas rally, as the chart shows:

As already explained many times, the Bitcoin rally in the last quarter of 2020 is primarily due to institutional investors. So it is not primarily private individuals’ money that is entering the market, but that of companies, hedge funds, fund companies, etc.

As in the traditional financial sector, these professional players determine how the courses develop. So not only the Nasdaq Group MicroStrategy for another 650 million US dollars Bitcoin bought as CEO Michael Saylor on December 21 via Twitter announced, but also more traditional investment houses.

For example, the American insurance company MassMutual should be mentioned here, which recently acquired Bitcoin for 100 million US dollars, as well as the Guggenheim hedge fund, which invests up to 10 percent of its five billion funds in BTC. New major investors are added almost every day, buying Bitcoin, but also other cryptocurrencies, in the double or triple-digit million range. This trend is then reinforced by private investors, who are also jumping back on the crypto bandwagon.

Bitcoin course: what’s next

It is no secret that many more institutional investors will push into the crypto market in 2021. Since the market capitalization of the crypto market is still low compared to other asset classes, these capital inflows should continue to provide support for cryptocurrencies.

The growth of traditional securities securitisations is particularly interesting here. These also enable investors without a wallet and the willingness to hold tokens to get into Bitcoin and Co. In the past few weeks, a number of new “Bitcoin securities” such as Exchange Traded Notes (ETNs) have been issued. The classic securities account is sufficient to participate in the Bitcoin price. This, too, should be seen as a positive sign at both private and institutional level.

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