Bitcoin price hits new record high
01 Dec 2020
The price of Bitcoin has hit a new all-time high on Tuesday, above $19,892 after nearly three years.
This is according to data from Coinbase and Tradingview.
Following a crash last week, the Bitcoin price rallied over the weekend, to surpass $19,000 on Monday.
The three main trends leading to Bitcoin’s rise from March’s figure of -$3,600 to over $19,892 include increasing institutional demand, lower selling pressure and the cryptocurrency’s resilience in 2020, Cointelegraph reports.
The majority of on-chain data shows Bitcoin demand from institutions has risen rapidly.
This was echoed by Grayscale, who pointed out a record number of institutions were invested in digital currencies in Q3.
According to a Grayscale Investments report: “More institutions invested in 3Q20 than ever before and have increased their average allocation from $2.2 million in 3Q19 to $2.9 million in 3Q20.
Institutions that are comfortable with multiple products within the Grayscale suite of products, have averaged nearly double the commitments of single-product investors during 3Q20.”
In addition, there was also low selling pressure from whales in November, with the amount of BTC being sent to exchanges from HNW investors falling during the month.
CryptoQuant CEO Ki Young Ju said the Exchange Whale Ratio is an indicator for long-term bullish market sentiment: “Dear $BTC shorters, You can call me a moon boy, but unfortunately, there won't be a mass-dumping like March this year. Exchange Whale Ratio (90-day MA) is still very low. Long-term bullish is inevitable.”
This low selling pressure helped Bitcoin to hold its rally during November to eventually hit an all-time high.
Moreover, in terms of resilience, JPMorgan said in June that Bitcoin’s recovery from the crash in March showed its staying power. This recognition likely acted as a huge confidence boost, particularly for institutional investors.