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Bitcoin Rallies beyond $27,000. Great News for #crypto Enthusiast

Bitcoin Rallies to $25K

Great bitcoin news. On Sunday 12/21/2020 Bitcoin attained the highest Bitcoin price of $27000. Crypto Enthusiasts and Investors are enjoying this happy moment.

Many users on Social Media Platforms declared “Merry Christmas”.

  • Riders of the Storms.

Bitcoin rallies once again proved to be the most valuable asset in the corona times. Hitting a new record price of $27,000 on Sunday, with investors declaring “Happy Bitmas,” on social media.

With the latest price increase, bitcoin’s year-to-date percentage gains have grown to over 240%. The cryptocurrency BTC has gained 3.15% this week alone. bitcoin price usd $27000

Blockchain.com observed a 40.46% growth in wallet creation year-to-date on its crypto exchange. That is about 18 million new wallets created on the site since December 2019. Bitcoin which is more than 10 years old now, enjoys the crazy ride in the adverse times.

Bitcoin’s market cap could reach $1 trillion sometime in 2021, according to Garrick Hileman, head of research at Blockchain.com, if investors take its reserve currency status more seriously. Even Goldman Sachs is taking the cryptocurrency seriously, noting that is poses an increasing threat to Gold.

“Gold’s recent underperformance versus real rates and the dollar has left some investors concerned that bitcoin is replacing gold as the inflation hedge of choice,” strategists led by Jeffrey Currie said in a note.

“While there is some substitution occurring, we do not see bitcoin’s rising popularity as an existential threat to gold’s status as the currency of last resort.”

Bitcoin has a current market cap of about $350 billion, while that of gold’s stands at roughly $10 trillion.

Investment inflows into the world’s biggest publicly traded Bitcoin investment trust are pivotal to the price of Bitcoin (BTCUSD), according to a recent report from strategists at JPMorgan. The Grayscale Bitcoin Trust (GBTC), a Bitcoin holding company, has $13.1 billion assets under management (AUM) and is valued at more than $18 billion in OTC markets.


>>> JPMorgan strategists say that investor inflows into the Grayscale Bitcoin Trust are “too big” for a Bitcoin price correction.


>>>The Grayscale Bitcoin Trust is a publicly-traded statutory trust in OTC markets with substantial holdings of the cryptocurrency.


>>>The trust provides indirect exposure to Bitcoin, but investment into the trust comes with significant riders and risks.

  • What Is the Grayscale Bitcoin Trust?

According to Bitcointreasuries.org, a site that tracks Bitcoin holdings for publicly traded investment trusts and firms, GBTC holds 572,644 Bitcoin or approximately 50% of the 1,150,622 Bitcoin in circulation at these ventures. About 18.6 million Bitcoin have been mined so far, and GBTC holds roughly 3.1% of the asset.

The trust company has reported an impressive array of statistics regarding investor inflows into its product since the beginning of this year. For example, its AUM jumped from $2 billion last December to $5.9 billion this past August, before shooting up to the current $13.1 billion figure.

JPMorgan’s strategists estimate that GBTC is adding assets at a rapid clip of $1 billion per month.

For institutional investors and hedge funds, GBTC is a convenient vehicle to gain indirect exposure to a volatile asset, without paying the associated costs such as custody. They can move into a Bitcoin trade when its price is on an upswing and exit when it drops.

Abhishek Shah

Journalist at TechMantle Technology Writer, Entrepreneurship, Business, IoT, Management

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