Bitcoin price edges up 20% overnight
12 Jan 2021
The dollar value of Bitcoin rose 20% on Monday night, as the world’s largest cryptocurrency by market cap quickly recovered from a 27% drop days before.
The wider crypto market followed suit on Tuesday, Cointelegraph reports, with more than $150 billion going back into the global market cap.
The spot price of Bitcoin soared from $30,468 to $36,633 in just over 15 hours heading into Tuesday morning, indicating overnight gains of 20.2%.
This returned a majority of the losses acquired by Bitcoin last weekend when the price nosedived from $41,880 down to $30,468.
The cryptocurrency has increased more than 13% in just a week, 92% in a month and around 340% in a year as markets were flooded with cash from central banks during the Covid crisis.
Indeed, Bitcoin advocates say that another price crash like the one from 2018 is highly unlikely. Back then, the BTC price reached a record high at the time of $19,900 to then plunge to around $5,870 in eight weeks.
According to Michael Hall, co-founder of Nickel Digital Asset Management, Bitcoin "is experiencing upside volatility which may correct sharply but tends to resolve reasonably quickly at higher levels as price discovery continues.
“We do not believe there has been any fundamental change in the outlook for Bitcoin which is now increasingly owned by longer-term investors, weighted towards Europe and North America, looking to buy and hold within multi-asset portfolios."
Despite Bitcoin’s recent decline, Rupert Douglas, head of Institutional sales at crypto custody provider Koine remains consistently bullish. “The market doubled from its previous high in a couple of weeks. It is highly unusual for a market to behave the way it is doing (but) I think we are going much higher, over $500,000 by 2023.”