Bitcoin (BTC) reached a record of more than US $ 28,000 per unit, which will end 2020 with a cumulative gain of more than 295%, in a year in which the interest of large institutional investors and the search for new assets of refuge due to the coronavirus crisis (Covid-19) fueled its meteoric growth.
According to different analysts of the cryptoactive market, the consolidation of its use and accumulation by numerous investors for value reserve imposes a new support price on Bitcoin and no strong downward corrections are seen in the near future.
Based on the listing board of the specialized page CoinMarketCap, Bitcoin traded this Wednesday at US $ 28,644, with a rise of 6.37% compared to yesterday’s close, therefore, since it exceeded US $ 20,000 for the first time on 16 Last December, the most famous cryptocurrency in the world climbed more than 40% in just two weeks.
“We are closing the year with a paradigm shift that produces widespread optimism and leaves the traditional detractors of Bitcoin speechless: the commitment to this cryptocurrency no longer comes from investors and speculators, but from the financial industry itself, which has begun to give their growing support, “said Andrés Ondarra, Bitso Country Manager for Argentina, to Télam.
In this sense, Bitcoin experienced in 2020 an increasing demand from large investment funds and institutional investors, attracted by its qualities of easy transaction and limited units, which make it similar to assets such as gold or other reserves of value.
According to Finance Magnates, so far this year, cryptocurrency funds and products have already accumulated inflows of US $ 5.24 billion, purchases that have intensified in recent days, especially after Christmas.
“Large purchases moved the needle considerably and made the capitalization of Bitcoin exceed US $ 524,000 million,” said Magdiela Rivas, manager of Paxful for Latin America.
“The market sentiment is very positive and it is not seen in the next few days that there will be a big correction,” said Rivas, for whom one of the reasons that explain the upward path of BTC is that “only 22% of bitcoins existing ones are forming part of the market. “
“This means that there is little supply, which makes the price continue to rise and until now there is no ceiling,” he said.
For Maximiliano Hinz, Latam Operations Director of Binance, the new rise of Bitcoin “marks another milestone in the history of the cryptocurrency, since it further consolidates the price above the support of US $ 25,000”.
“Additionally, what is called the season of alternative cryptocurrencies began, which have begun to rise other cryptocurrencies and not only Bitcoin,” Hinz told Télam, referring to other of the more than 5 thousand cryptocurrencies that are in circulation, which “demonstrates the increase in interest on the part of minority investors, after a rally of institutional investments.”
Specialists agree that the purchase and sale of cryptocurrencies through the PayPal platform is one of the triggers of this interest in United States, since the company began to market them last November.
“PayPal already allows its customers in the US to operate with these cryptocurrencies, and BBVA will do the same in Spain. These are just two examples of a change in current in a segment that previously criticized this market and is now supporting and even investing in it “, assured Ondarra, who also highlighted the support of personalities of finance who publicly declared to have investments in Bitcoin.
According to data from the sector, the number of Argentine users who bought cryptocurrencies to preserve the value of their money or as a form of investment grew by 300% during 2020, which is why it is consolidated as a savings option that is expected to continue growing in the future.