Bitcoin Rally

Bitcoin Surges Through Record Highs

Posted Thursday, December 17, 2020 by
Rowan Crosby • 1 min read

Bitcoin has surged higher taking out its prior record highs in the process.

The move comes on the back of yesterdays FOMC, which saw the Fed continue to suggest their massive bond-buying program would continue indefinitely.

BTC rose to $21,500 as price took out both the previous highs and the all-important $20,000 level.

Bitcoin continues to benefit from the current uncertain around the globe. Firstly, many are drawing comparisons with GOLD as a store of value and a risk-off type asset. Interestingly, Bitcoin was trading in-sync with risk assets for a long time.

At the same time, the continued printing of money by the Fed is another reason, pundits like Bitcoin. As the money supply continues to rise at a rapid rate, the USD is effectively being devalued. This will only increase the value of assets. Bitcoin also benefits from slowly decreasing new supply which is the exact opposite of a fiat currency.

Price has also been rising since Paypal announced it would be adopting digital currencies going forward, further instilling them in the mainstream. There is also plenty of speculation that Government’s worldwide want to adopt some form of digital currency, so they can better track people and of course tax them.

So where to now for Bitcoin?

Clearly, we will need to see how price reacts on the pullback to the prior highs. We often see large moves followed by periods of consolidation.

The bulls are undoubtedly in control, however, we do know how volatile Bitcoin can be. It is far better to buy on a pullback and look for a break of the prior highs.

BTC – 240min.
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