Bitcoin Heading Towards $30,000 Next?

Bitcoin crossed the $29,000 mark on the last day of 2020, and continues to hold above this on the first day of the new year, with its value

Arslan Butt•Friday, January 1, 2021•1 min read

Bitcoin crossed the $29,000 mark on the last day of 2020, and continues to hold above this on the first day of the new year, with its value growing four times through 2020 as more investors turned their attention towards the crypto market. At the time of writing, BITCOIN is trading at around $29,300.

The most popular cryptocurrency has risen fast after crossing the $20,000 level on 16 December 2020, gaining nearly 50% since then. Bitcoin has been trading bullish over rising interest from large investors based in the US over hopes that it could soon gain mainstream acceptance as a method of payment.

According to estimates by CoinMarketCap, the total market capitalization of BTC has exceeded $546 billion. In addition to increased interest from larger investors and corporates, the bullish moves in the Bitcoin have also been driven by a weakness in the US dollar.

The US dollar has experienced significant weakness through 2020 and is likely to continue weak in the near future as markets anticipate more fiscal stimulus for the US economy. A weaker dollar has made Bitcoin more attractive as a hedge against inflation and an alternate against gold that has also become more expensive.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.