No one can deny that Bitcoin is close to reaching the $ 30,000 level in the last leg of the 2020 bull run. In fact, forecasts for 2021 expect Bitcoin’s price to range from $ 36,000 to beyond $ 300,000.
Regarding the digital asset’s price increases, Jeremy Allaire from Circle explained the key factors for this bull run.
In a recent interview, Allaire thought that Bitcoin was on the rise as the dollar continued to depreciate.
He also believed that corporate capital was primarily behind price momentum.
Undoubtedly, institutional investment in Bitcoin has become the defining trend this year, which has fueled the cryptocurrency market. Guggenheim recently decided to start allocating to Bitcoin while it was worth $ 10,000, and MicroStrategy announced that the total Bitcoin purchases made in 2020 were over $ 1 billion.
In fact, Bitcointreausuries suggested that more than 800,000 Bitcoins were held by public companies. The list includes 16,651 BTC Galaxy Digital and Square, which holds 4,709 BTC. Grayscale AUM’s crypto asset is said to be worth $ 19 billion.
Bitcoin is a major competitor for this year’s best performing macro asset, with a year-to-date return rate of over 270%.
Bitfinex CTO Paolo Ardoino said in a statement shared with AMBCrypto that while growing corporate presence is an important part of the narrative for the current bull run, it also awaits increased retail interest in “Bitcoin as a form of digital gold”.
Nic Carter of Coinmetrics found that addresses with assets worth $ 10 or more in the Bitcoin ledger were above their late 2017 level. He argued that the bitcoin supply was more dispersed into sizes apparently “consistent with retail investors”.
Another major difference between the Bitcoin market and 2017’s is better enterprise storage solutions. However, it is important to note that this year’s drop in Bitcoin stock exchange reserves could indicate less stock market dominance over the next year.
Additionally, Jameson Lopp of Casa pointed out that Bitcoin security has improved, with only 4,366 BTC stolen in massive thefts made public this year.