Yesterday, Bitcoin’s price touched the all-time high of $36,000. But that position did not survive for a long time as a bearish blow caused the price to fall.
Throughout the day, the price struggled in a territory between $34,000 and $35,000. As of writing this article, the leading digital asset is exchanging hands at $34,971. CoinMarketCap shows the value has increased by 7.66% in the previous 24-hours.
Bitcoin has set an overall momentum of the global crypto markets after it became successful in rising to fresh new all-time highs. Following the leading cryptocurrency, other cryptocurrencies have also jumped higher. The global crypto market cap is close to claiming $1 trillion. Currently, the market cap stands at $962 billion after an increase of 8.43% over the day.
One crypto analyst explained that there seemed no signs of BTC’s price exhaustion at current levels. The BTC rally is in the “warm” zone rather than in the “overheated” territory. According to the market analyst:
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“This rally is warm but not yet overheated. This is how much ‘speculative premium’ we have right now compared to a similar phases of the prior 2 bull markets.”
The above scenario explained that the crypto community might witness new high levels in the immediate future before entering into an overheated zone.
In her talk at CNBC, UBS Advisor Alli McCartney elaborated on potential reasons that cause investors to look for Bitcoin. She said there are individual investors in the crypto space who act like institutions. They are taking a risk in Bitcoin, which is not a blindfold attitude. The flagship cryptocurrency has a charming record of how it went from zero to above $36,000 in just a decade.
Adoption of Crypto is High
She pointed towards its adoption phase that is in full swing now. Major asset management firms have stepped into the crypto industry. For instance, the famous custodian Fidelity bought Bitcoin. Payment giant PayPal has activated the service of buying and selling cryptocurrency. Amid the second wave of the Coronavirus pandemic, it isn’t easy to find hedge assets like Bitcoin. So, there are no alternatives to the top digital asset in the market that provides such a high return over investment.
“So adoption is going up, price is going up, and the lack of available alternatives in the market, in terms of being diversifiers, like bonds, have largely gone out the window in terms of their relative risk-return,” McCartney added.