Digital currency markets are in for one of the best starts to a new year with Bitcoin leading the fray on gains. With a number of crypto assets seeing significant price gains, Bitcoin continues to register new milestones as the upward momentum continues to gather pace.
Bitcoin has already powered through the $33,000 mark a week after powering through the then-record high of $21,000. Over the past week, the crypto has gained more than 20% in market value with its market value climbing to record highs of more than $600 billion.
Bitcoin is not the only cryptocurrency attracting bids in the crypto market. Ethereum has also been on an impressive run jumping by more than 20% the past week. The second-largest crypto by market cap is up by more than 119% over the past 90 days with a market cap of about $4.8 billion.
In contrast, Ripple has been on the receiving end even as other cryptocurrencies continued to power high. The once third-largest crypto by the market has since ceded the third spot to Tether. XRP sentiments have come under pressure in recent weeks in the wake of the Securities and Exchange Commission lodging investigations into parent company Ripple Labs over the sale of the crypto.
XRP is down by more than 20% over the past week and 64% over the past month. Litecoin the fifth-largest cryptocurrency is up by more than 5% over the past week and 52% up during the last 30 days. Amid the gains in the broader crypto markets, the big question are, how far can Bitcoin continue to rise?
After flirting with the $30,000 level for weeks the flagship cryptocurrency has exploded going on to register a new all-time high above the $33,000 level. The rally has coincided with an uptick in trading volume affirming renewed investor’s interest.
Having more than tripled in value in 2020, it waits to be seen how Bitcoin will perform in 2021 after the recent rally. The bullish momentum remains intact as more investors continue to be drawn to it as the U.S dollar continues to weaken further.
Expectations are high that Bitcoin could continue to rally supported by solid policy frameworks. For instance, the Federal Reserve leaving interest rates near the zero mark for more years should continue to fuel dollar weakness. In return, Bitcoin is poised to benefit and continue powering high.
Supporting further Bitcoin gains is the fact that well-known names are adding to Bitcoin’s growing mainstream appeal. BlackRock Chief Investment Officer has already reiterated that the flagship cryptocurrency has what it takes to replace Gold as a safe-haven.
Similarly, payment giant PayPal has already embraced Bitcoin adding its support in its flagship apps. With PayPal making it possible for people to buy sell and hold the crypto, its use is poised to increase further in 2021. Square is another payment giant that has echoed its support for Bitcoin with a $50 million bet.
Amid the recent meteoric rise, there is still a wave of concern over a potential pullback. In 2017 Bitcoin registered a massive run hitting then a record high of $20,000 before plummeting to just over $3,000.