Bitcoin price has just hit a new all-time high above $25,000 for the first time ever. The digital asset has been unstoppable since March 2020 after the initial crash due to the Coronavirus pandemic. Although the digital asset didn’t hit $25,000 on all exchanges and stopped at $24,976 on Binance and others, it is still a massive win for the cryptocurrency market.
Bitcoin’s dominance over the market has continued to rise for the past two months, touching 69% while the total market capitalization of all coins except Bitcoin has dropped, probably dragged down by XRP which is suffering a significant crash because of the SEC.
Bitcoin price is now on its way to new highs as it is in price discovery mode and faces no clear resistance ahead.
Bitcoin Price Analysis: Long-Term View
It’s important to note that while Bitcoin price continues rising, the number of whales seems to be decreasing. The number of large holders with 1,000 to 10,000 coins dropped by 75 in the past week. Similarly, four whales holding between 10,000 and 100,000 BTC left the network which indicates that they are taking profits, increasing the selling pressure.
The MVRV (30D) although it is definitely extended, it’s nowhere close to the levels we have seen in December 2017, which means Bitcoin price still has some more room to go up.
Perhaps the most important factor pushing Bitcoin price is how fast the Grayscale Trust fund continues accumulating Bitcoin. The asset management firm holds close to 600,000 BTC now and added recently around 12,319 in just 24 hours. In addition to Bitcoin, Grayscale also buys Ethereum, Bitcoin Cash, Litecoin, Ethereum Classic, and even XRP, although in fewer quantities.
Additionally, other prominent firms and companies have purchased large sums of Bitcoin throughout 2020, increasing the buying pressure of the digital asset. Bitcoin price might continue rising towards $30,000, even before the end of 2020.
We wish you a Merry Christmas and many gains.