Bitcoin (BTC) reached its all-time high, surpassing the $ 24,000 level. BTC’s price movements appear to be due to the increasing activity of Bitcoin whales, developments regarding new institutional investors, high trade volume in the futures market, and new quarantine measures against Covid-19.
As the leading cryptocurrency prepares for a new target, analysts remain optimistic with anticipation of $ 30,000. Others are turning their attention to “altcoins”, which have recorded much bigger gains compared to Bitcoin in recent weeks.
At the time of writing, the price of BTC is at $ 23,772, with a 3.95% gain in the last 24 hours. On the weekly and monthly charts, BTC recorded gains of 32.51% and 34.21% respectively. Despite its good performance, BTC has been outperformed by XRP (100.6%), XLM (118%) and ADA (56.30%) in this recent period.
Trader Byzantine General shared the chart below to show Bitcoin investors’ high activity over the past 24 hours. The trader noted that the buy and sell orders on the Binance exchange were “crazy” for both sides, and despite the “massive liquidations” he had recorded large amounts.
In addition, Skew reported that the futures market on the Chicago Mercantile Exchange (CME) recorded the highest daily trading volume of all time. This metric has increased in recent days. On December 18, the daily trading volume was 1.4 billion dollars and the open interest was 900 million dollars.
Trader Cantering Clark confirmed that the rally was led by investors in the futures market. In this sense, he pointed out that a reversal is likely before Bitcoin regains its bullish momentum. The trader set the support level at $ 22,000 in the short term.
Institutional FOMO Is Driving Bitcoin Price
Long-term adoption remains a key factor in the prolongation of Bitcoin’s price rally. Recently, investment firm Jefferies has joined the wave of institutions to assign some of their portfolios to Bitcoin. According to Global Equity Head Christopher Wood, the firm will reduce its gold fund from 50% to 45%. Therefore, 5% of their funds will be converted into Bitcoin. Wood claims the firm will expect a drop in price to increase its position in BTC.