This week has turned out to be the most pleasant one for the cryptocurrency market as all the coin started to rise in the bear’s suppressing kingdom. The currencies were all painted in green after several weeks of bleeding, with some even showing growth by double digits.
Additionally, out of all the days in this week, today, December 20, has turned out to be a rather special one for the whole market as all coins have started to take steps to regain their previous positions. This includes all major currencies such as Bitcoin [BTC], Ethereum [ETH], XRP, Bitcoin Cash [BCHABC], and Litecoin [LTC].
Bitcoin [BTC], the ruler of the market with the highest market capitalization, smashed through the $4,000 market after bleeding for almost two weeks because of the bear’s assault.
According to CoinMarketCap, at press time, Bitcoin was trading at $4,057 with a market cap of $70.73 billion, breaching the $4,000 mark in a single blow. The cryptocurrency records a trading volume of $7.56 billion and is witnessing a ride up the hill by over 8% in the past 24 hours.
The highest trade volume for the coin is surging in from BitMEX, as the exchange has $3 billion volume for BTC/ USD trade pairs. The second highest trade volume is pictured to be on Binance with Tether [USDT] pair. The other exchanges in the top-five include CoinBene, OKEx, and Bitfinex.
Ran NueNer, CNBC Crypto Trader host said on Twitter:
“40% recovery in a week! I’m cautiously optimistic that we have seen the bottom. On your marks, get set, troll…”
Recently, Mike Novogratz, spoke about Bitcoin [BTC] and other cryptocurrencies massive drop in price, with most of the currencies seeing over 90% drop since their all-time high. He said:
“We had a bubble, it popped, we’ve had a monster correction, altcoins are down 98%, Ethereum’s down by 90+%, Bitcoin is down by 85%, we’ve had the correction, and a lot of people say that this was Tulips, well, it wasn’t Tulips, it was a mania built on something that’s real.”
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Bitcoin will likely be valued at $100,000 with a market cap of over $2 trillion before the end of 2021
The entire cryptocurrency market seems to be on the brighter side of the market since the beginning of the year. A majority of the coins have recorded significant recoveries from their 2018 slump, a period during which most coins lost over 90 percent of their value, when compared to their all-time highs. Among all the coins in the market, Bitcoin [BTC] aka the digital gold, was noted to be making a massive comeback as the coin breached the $11,000 mark after nearly 15 months. The coin however, soon retracted to settle below the $11,000 level.
According to CoinMarketCap, at press time, Bitcoin was trading at $10,887.27 with a market cap of $93.549 billion. The coin recorded a 24-hour trading volume of $20.757 billion for the past 24 hours and saw a massive rise of over 17 percent over the past seven days.
Anthony Pompliano, Co-founder of Morgan Creek Digital Assets, predicted that the largest digital currency could rise to reach $100,000, before the end of 2021. Pomp added that he was around 70-75 percent confident in this prediction. He stated,
“As I have previously said, making predictions is difficult […] Part of my process as a professional money manager is forming a thesis (price target), identifying a timeline (date), and establishing a confidence level. And then constantly re-evaluating those three aspects of my thought process as I receive new information.”
Pomp however, listed six pointers that have to be understood beforehand. First, this prediction is not an investment advice, and people should do their own research before investing in the digital currency. The second is with respect to Bitcoin’s volatility, with Pomp remarking that since it was a highly volatile market, the coin could witness a significant fall before being valued at $100,000. He stated,
“I anticipate that there will be numerous 20-30% drawdowns from new all-time highs as the asset continues to appreciate in value. These mini-boom/bust cycles should not cause panic, but rather need to be understood as natural market dynamics whenever an asset gains significant value in short periods of time.”
Further, the partner of the investment firm stated that the rise would be driven by several catalysts. This includes institutional adoption, exchange-traded funds and retail product approvals, global instability, governments all across the globe manipulating currencies, markets and economy. He went on to state,
“The market cap of Bitcoin will reach $2+ trillion when Bitcoin is worth $100,000. This is less than 1/3 the market cap of gold and less than 1/40 the global money supply.”
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