Bitcoin reaches a new all-time high and climbs above the 52,000 US dollar mark. There is much to suggest that the price rally will continue, as a number of things are different from the 2017 bull run. The market update.
Bitcoin is well on its way to becoming the first crypto asset to reach a market capitalisation of over one trillion US dollars. Last night, BTC set a new all-time high at US$52,548.
This means that the market capitalisation of the Bitcoin Code cryptocurrency is above the 970 billion US dollar mark for the first time. BTC has thus recently become bigger than Tesla, Samsung or Facebook. But how sustainable is this price increase? There is much to suggest that this bull run is very different from those of the past.
Since the beginning of 2020, just under 635,000 BTC (US$32,924,089,600) have left crypto exchanges. There are three main reasons for this.
Demand for the digital gold has increased extremely in recent months. Large investors have bought more than 600,000 BTC through asset manager Grayscale since the beginning of June 2020.
In addition, MicroStrategy, Tesla, Square, Stone Ridge and other companies have acquired a total of almost 185 more BTC in the same period. But that’s not all.
Decentralised Finance (DeFi) on Ethereum has also caused some investors to pull their BTC from crypto exchanges. According to the crypto analysis platform DuneAnalytics, more than 160,000 BTC are currently tokenised as ERC-20 tokens on the Ethereum blockchain.