Bitcoin (BTC) continued its rambling holiday weekend rally, crossing $ 27,000 on 27 December. What’s more, the market capitalization of bitcoin has crossed half a trillion dollars for the first time.
Bitcoin market cap violates $ 500,000,000,000
New record-high levels for bitcoin come less than three days after breaking resistance at $ 24,000. It also means that the BTC price has doubled in the last two months after receiving around $ 10,000 in the month of December alone.
Bitcoin also has a market capitalization of over $ 510 billion now, putting it under Berkshire Hathaway of Warren Buffett, the world’s tenth largest company. This comes less than a day after Visa’s market cap was exceeded.
As Cointelegraph pointed out, this weekend’s bounce has kept the bitcoin price above the average trend line of the popular stock-to-flow model (about $ 24,900), forecasting a $ 100,000 target by December 2021.
At the same time, the current bull cycle appears to be different and more sustainable than in 2017, with many traders expecting more upside in the coming months. Reasons for this include institutional purchases, strong fundamentals, less available supply on exchanges, and still relatively low interest for retail buyers.
However, this does not rule out the possibility of major deficiencies in the near term, particularly as the BTC price is steaming towards the next $ 30,000 psychological resistance.
“Vertical moves often end in a sharp correction (remember Summer ’19); those sharp corrections are made sideways,” Warn On December 27, Contextograph Markets analyst Michael Van de Pope. They said:
Do not be sliced out of a correction. The bull market will last longer. Keep a long horizon.