The first days of 2021 turned out to be historical for Bitcoin as the top crypto scored another record, making it to nearly 35,000$ per one BTC for the first time in history. Bitcoin went on a serious rally with a rise to 20,000$ in the first days of December. The bull run escalated despite occasional dips, gradually but promptly taking BTC to new highs above the 20,000$ mark. Bitcoin already got close to the value of 30,000$ with the last days of 2020, trading at the price of over 29,000$. With the first days of 2021, Bitcoin grasped the positive momentum and headed for the latest record of 34,684$.

Bitcoin Hits a New All-time High in the First Days of 2021

Bitcoin reached 34,684$ on January 3rd, skyrocketing since December 1st when the crypto topped a record high of 20,000$ for the first time in the history of BTC. The rally didn’t end there as Bitcoin achieved 29,000$ by the last day of the year 2020. Still driven by bulls and pulling the rest of the market with it, Bitcoin doesn’t seem to be exhausting the post-halving momentum yet. After a minor dip to 28,000$ on January 1st, Bitcoin recollected for a price reversal, reaching 30,000$ already at the end of the next day, while Bitcoin rallied to nearly 35,000$ on January 3rd.

Record Trading Volumes and Market Cap for Bitcoin in 2021

While scoring new all-time high prices and breaking new records, Bitcoin is also recording increased trading volumes and record data for market capitalization. With the latest price correction, Bitcoin now takes nearly 67% of the total market cap of all cryptocurrencies. Bitcoin is recording 581,1 billion dollars in market capitalization, while trading volumes for the last 24 hours are set at 74,9 billion dollars. For comparison, Bitcoin recorded trading volumes by a bit over 18 billion dollars in January 2020.

What is Driving Bitcoin Price Up to New Records?

As suggested years before the latest Bitcoin rally, Bitcoin and crypto enthusiasts predicted that Bitcoin should reach new highs with the rising interest in the top crypto among institutional investors. Bitcoin positions by institutional investors increased during the time of a brief US dollar dip, while BTC was conceived as a hedge against inflation amidst the global crisis caused by COVID-19 pandemics. Bitcoin is looking at historical price changes with 2021, recording 326% of gains on the yearly chart.

MicroStrategy, a business intelligence consulting firm, now owns half a billion dollars in Bitcoin, joining institutional investors in the latest Bitcoin rally by buying thousands of Bitcoins.
Square is following the latest trend among institutional investors, so the company announced buying over 4,000 Bitcoin coins at an aggregate purchase of 50 million dollars.
The CEO of BlackRock, the world’s largest asset manager, Larry Fink, is bullish on Bitcoin as well, suggesting that Bitcoin now has a chance to become a global asset with the latest bull run.
PayPal, the famous provider of financial services, is also tapping into the potential of cryptocurrency, enabling their US clients to buy, sell, and hold selected cryptocurrency, among which is Bitcoin.
Stanley Druckenmiller and Paul Tudor Jones, two of the most famous hedge fund managers also shared their support for Bitcoin. Druckenmiller invested over 1% of his total assets in Bitcoin, while the billionaire sees BTC as a new and interesting store of value “that could beat gold”. Paul Tudor Jones placed 2% of his total assets in Bitcoin.

Bitcoin is becoming more often recognized as a prominent asset and a profitable way to store monetary value and protect assets from inflation, competing against gold. Now that more institutional investors are joining the rally and recognizing the potential of the top crypto, Bitcoin may see new skyrocketing prices in 2021 and beyond, especially after a strong start in 2021 with nearly 35,000$ per one BTC.

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Author: Maja Rogic