Bitcoin (BTC) continues its escalation over the holiday weekend, surpassing $ 27,000 on December 27. In addition, Bitcoin’s market capitalization exceeded half a trillion dollars for the first time.
Bitcoin’s market value exceeds $ 500 billion
Bitcoin’s new record came less than three days after breaking the $ 24,000 resistance. It also means that the price of BTC has now doubled in the past two months, after earning almost $ 10,000 in December alone.
Bitcoin’s market capitalization also exceeds $ 510 billion, which puts it just below Warren Buffett’s Berkshire Hathaway, the tenth largest company in the world. This occurs less than a day after exceeding Visa’s market capitalization.
As reported by Cointelegraph, the increase this weekend put Bitcoin’s price above the average trend line of the popular stock-to-flow model (about $ 24,900), which predicts a target of $ 100,000 in December 2021 .
At the same time, the current bullish cycle appears to be different and more sustainable than in 2017, with many traders expecting higher in the coming months. The reasons for this include a institutional buying frenzy, stronger fundamentals, less stock availability and still relatively little interest from retail buyers.
However, this does not rule out the possibility of large setbacks in the short term, especially as the price of BTC appears to be preparing for the next $ 30,000 psychological resistance.
“Vertical movements usually end in a quick fix (remember Summer 19)? These quick fixes are done to establish a side stripe,” warned Michael van de Poppe, analyst at Cointelegraph Markets, on December 27. He added:
Don’t be cut out of a correction. The bull market will last for a longer period. Have a longer horizon.