Market Wrap: Bitcoin Closes 2020 Near Records



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To take away:

Bitcoin nearly tripled its price in 2020 and ended the year near $ 29,000, but the ether gained 450%.

  • Bitcoin (BTC) is trading around $ 28,963 at 9:00 p.m. UTC (4:00 p.m. ET), gaining 1.5% in the previous 24 hours.
  • 24 Hour Bitcoin Range: $ 27,916.63 – $ 29,280.05 (CoinDesk 20)

Bitcoin price, December 30 – December 31, 2020.

Bitcoin printed a new high above $ 29,000 early Thursday before dropping sharply to $ 27,900 during hours of trading in the United States, according to data compiled by CoinDesk 20.

Despite the minor drop, the number one cryptocurrency in terms of market value is considering its third consecutive monthly gain, a feat last achieved in the second quarter of 2019. The cryptocurrency has risen over 45% this month- ci only and is on track to complete 2020 with at least a 290% gain.

Rising prices put bitcoin far ahead of traditional assets such as gold and stocks. The yellow metal has gained 25% this year and the S&P 500, Wall Street’s benchmark, added 15%.

The year 2020 will go down in history as the period of bitcoin’s maturation as a macro asset, with prominent publicly traded companies such as MicroStrategy diversifying their liquidity reserves into cryptocurrency.

Most observers expect a continued recovery in 2021. “The long-term economic impacts of COVID are unknown. However, as we are still in the midst of major economic turmoil and historic volatility, I believe bitcoin / crypto will continue to rise and be at the peak of positive change, ”said Changpeng“ CZ ”Zhao, CEO of the exchange. of Binance cryptocurrency. in a New Years message.

Analysts at investment banking giant JPMorgan predict that the growing adoption of Bitcoin by the general public is hurting the price of gold.

However, a correction could be seen in the near term if cash inflows from institutional investors slow down, according to Ki Young Ju, CEO of cryptocurrency data provider CryptoQuant.

“We haven’t had any major exits in Coinbase since $ 23,000,” Ju told CoinDesk. “The transferred tokens are decreasing and the fund flow ratio for all exchanges is increasing. Grayscale BTC holdings are 607,000 since December 25 ”.

From a technical analysis standpoint, $ 27,300 is key support that, if breached, would open the doors to $ 25,300, according to EQUOS ‘daily Bitcoin analysis email.

Ether surpasses bitcoin

  • Ether (ETH) is trading around $ 742.19 at 9 p.m. UTC (4 p.m. ET), down 0.8% in the previous 24 hours.
  • 24 Hour Ether Range: $ 723.18 – $ 755.56 (CoinDesk 20)

Ether Price, December 30-December. 31, 2020.

Ether, the second largest cryptocurrency by market value, has gained over 450% this year from bitcoin’s 300% rally. The cryptocurrency hit a 31-month high at $ 757 on Wednesday and was last seen at $ 730.

Ether received a boost from the explosive growth of decentralized finance in 2020, and bigger gains could be expected next year.

According to Ryan Watkins, an analyst at crypto data provider Messari, the recent announcement by CME to launch ether futures in February is a sign of growing institutional interest in cryptocurrency.

Bitcoin traced a strong rally ahead of listing futures on CME three years ago. The exchange announced bitcoin futures on October 31, 2017, as the cryptocurrency was trading near $ 6,300, and traded the first contract on December 27. By that time, prices had approached $ 20,000.

Other markets

Digital assets on CoinDesk 20 are mostly down on Monday.

Notable winners day at 7 p.m. UTC (2 p.m. ET):

  • cosmos (ATOM): + 11.5%
  • chain link (LINK): + 1.7%
  • OMG network (OMG): + 1.6%
  • orchid (OXT): -5.0%
  • stellar (XLM): -4.5%
  • Bitcoin cash (BCH): -4.0%
  • Japan: Nikkei 225: 27,444.17 (-123.98 or -0.45%)
  • UK: FTSE 100: 6,460.52 (-95.30 or -1.45%)
  • United States: S&P 500: 3,756.07 (+ 24.03 or + 0.64%)
  • Oil was down 0.22%. Price per barrel of West Texas Intermediate crude: $ 48.18.
  • Gold was in the green at 0.3% and $ 1,900 at time of release.
  • The yield on 10-year US Treasuries fell to 0.917% on Thursday.

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