Bitcoin Skyrocketing to Hit All-time High of Just Under $20,000
During the last hour of November 2020, bitcoin price skyrocketing to hit all-time high.
Nearly three years after it went on a hair-bending rise and hit a peak of $19,766, bitcoin gained a daily increase of 9.17% last night. The turnover of bitcoin in 24 hours was 26.69 billion US dollars, with a market value of 366.8 billion US dollars, which exceedes the market value of JP Morgan Chase.
“The difference between the price rebound now and 2017 is that the market was driven by retail speculation in 2017, and now it is driven by institutions and crypto whales.”
Said Mati Greenspan, founder of Quantum Economics, there has been a degree of FOMO (feeling of missing out) from a large number of increased holdings of various assets from the Gray scale of the earlier layout to more financial institutions applying for the trading license of bitcoin and other assets. Therefore, it is obvious hat more major capital have entered the field, and it can be understood that the absolute bottom of the total market value of bitcoin or crypto assets has been greatly raised.
Bitcoin has a strong financial attribute, so speculative demand is an important factor affecting the price of bitcoin. As a special asset class, bitcoin, different from stocks or bonds, will not generate any predictable cash flow. The only way for investors to get return is the price increase. Like all risky assets, its price is subject to the pendulum of investor sentiment and the change of risk attitude, showing the characteristics of cyclical change.
Since mid-October, bitcoin prices have jumped from around $10000 to $19000. Many people in the market are optimistic about bitcoin, believing that bitcoin can pump to $80000 or $100000 by the end of the year 2020. On the other hand, many investors began to use credit cards or loans to invest in bitcoin, which is very dangerous behavior.
From the perspective of bitcoin greed index, it has reached 94, and the market is in a state of extreme greed and fanaticism. Since mid-November, the bitcoin greed index has been at a high level of around 90, which is a very dangerous signal.