HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

Bitcoin Hits $17K After Three Years; “Greatest Parabolic Advance” Ahead?

Bitcoin 2020/11/17 15:09 by Yashu Gola

Bitcoin has breached $17,000 for the first time in the last three years.

The flagship cryptocurrency hit $17,100 ahead of the New York opening bell Tuesday, forming another upward leg in a rally that has already ballooned by 58 percent in the fourth quarter. Meanwhile, its market cap closed towards $315 billion, just $20 billion away from its all-time high established in December 2017.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDTBitcoin reaches $17,000 in a relentless upside rally. Source: BTCUSD on TradingView.com
Bitcoin reaches $17,000 in a relentless upside rally. Source: BTCUSD on TradingView.com

Since March 2020, when its price crashed to the yearly low of $3,858 amid a global market rout, Bitcoin has surged by more than 350 percent. On a year-to-date timeframe, it is up 136 percent.

Bitcoin’s latest parabolic rally serves as a reminiscent of the infamous 2017 boom. Back then, the cryptocurrency had stormed from $800 on January 1 to $20,000 on December 11, 2017. The only difference between then and now is institutional capital.

Then and Now

The previous rally ran hot due to the then-booming initial coin offering (ICO) industry. Hundreds of young blockchain startups appeared with a business model to raise funds in Bitcoin and Ethereum. Therefore, investors who saw these young companies as unicorns started buying BTC and ETH as their tools to purchase their native tokens.

But more than 90 percent of those startups either turn out to be scams or vaporware. They sold whatever BTC and ETH they had raised, causing their market to crash throughout 2018. As of December 2017, one Bitcoin token was available to purchase for as cheaper as $3,000.

But this time, the Bitcoin rally appears against a worsening economic outlook led by the coronavirus pandemic. With businesses suffering and unemployment at dangerous levels, global central banks are making lending cheaper. They are also buying government bonds infinitely.

Meanwhile, the governments are also releasing trillions of dollars worth of stimulus aids to aid businesses and individuals. Jerome Powell, the chairman of the US Federal Reserve, has openly claimed that they are targeting higher inflation in the coming years.

A relentless quantitative easing is reducing the purchasing power of the US dollar. Also, an ultra-low interest rate environment is stealing yields away from long-dated Treasuries, some of them even returning negative returns.

That serves as the primary reason why legendary investors like Paul Tudor Jones and Stan Druckenmiller have gained exposure in Bitcoin, an asset that comes with a limited supply of 21 million tokens. Other firms, including MicroStrategy and Square, have also replaced their cash reserves with Bitcoin.

More Bitcoin Gains Ahead

Alex Saunders, the CEO/co-founder of Nugget News AU, said Tuesday that the Bitcoin market is about to see the greatest parabolic advance ever.

He noted that the capital outflow from exchanges has increased against the rising Bitcoin prices. Meanwhile, less money is entering the trading platforms, which reflects traders are looking to hold Bitcoin instead of trading them for other assets.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDTBitcoin net transfer volume to/from exchanges. Source: BTCUSD on TradingView.com
Bitcoin net transfer volume to/from exchanges. Source: Glassnode

“Remember, Bitcoin hasn’t really scaled since 2017. Full Mempool + Euphoria = Empty exchange order books. $BTC Price = ???”

0 Like(s)



You should also read...

Bitcoin 09/11/20 21:00 by Tony Spilotro
Five Reasons Why Bitcoin Price Dropped And Could Correct Further
Bitcoin price has been rallying for most of 2020, but over the last two months, the cryptocurrency’s momentum kicked into overdrive. Anything that goes up, must at some point come back down to c...
Read More
Bitcoin 19/11/20 02:00 by Tony Spilotro
Bitcoin Approaches Top Of Accumulation Zone, Parabolic Phase Begins With Breakout
Bitcoin every four years post-halving goes parabolic and rises to a new all-time high. The ebb and flow of these cycles each time attracts new money and participants to the cryptocurrency network and ...
Read More
Bitcoin 27/11/20 02:00 by Tony Spilotro
Bitcoin Indicator Reaches Historical Extreme: Price Sheds Two Thirds Upon Reversal
Bitcoin price this week reached a high of $19,500, following a six-week, 60% rally. From the moment the first-ever cryptocurrency made it above $12,000, on 3-day timeframes, there were twelve consecut...
Read More
Bitcoin 04/12/20 21:00 by Tony Spilotro
“Cyclical Nature Of Bitcoin” Could Provide Clues On Continuation Or Correction
Bitcoin is clearly at a pivotal point in its current market cycle. But market cycles aren’t always obvious as to what might occur, even if the when happens to become more clear with time. In the...
Read More
Bitcoin 05/12/20 02:00 by Tony Spilotro
Recent Bitcoin Breakout Barely A Blip In Coinbase Volume, But What Does This Mean?
Even those who have been around the cryptocurrency space for some time are still in disbelief over how fast Bitcoin rose from $3,000 to setting a new all-time high in the same year. But despite what t...
Read More