Alongside the Black Friday and Cyber Monday shopping spree came something unexpected. Days after Bitcoin crashed over 15% in a price correction, Bitcoin price hits a new all time high on Cyber Monday. Bitcoin surged back up amidst a weekend of capitalist indulgence to set a new record high of $19,850 – the new high score after the previous record set in December 2017.
Bitcoin usually picks up in price activity around the end of the year, following an observable buy and sell cycle – previous highs were set on 30 November 2013 ($1,165) and 17 December 2017 ($19,783).
Punters have already named this day “Cypher Monday”, and even though the new price was not able to continue its upward trajectory, there’s plenty more time for retail investors to catch up on the news and decide if adding Bitcoin or other cryptocurrencies to their portfolio for Christmas would generate strong returns.
Ease Of Purchasing Continues To Improve For Bitcoin And Cryptocurrencies
The recent rally has been fuelled by strong inflows from both institutional and retail investments. The Grayscale Bitcoin Trust (GBTC), a publicly traded investment vehicle meant for institutions to gain exposure to BTC, saw various fund managers such as Guggenheim add Bitcoin to their investment portfolio in recent weeks. Each share in GBTC represents partial holdings in Bitcoin held by Grayscale, which is a unit of the Digital Currency Group that owns Coindesk.
GBTC is just one convenient way to gain exposure to BTC – while the traded security offers institutional investors a reliable and familiar way to take long positions in BTC, retail investors have been snapping up PayPal’s cryptocurrency and Bitcoin offerings ever since its launch on 21 October – giving every person on the street an easy way to acquire cryptocurrencies without the hassle of maintaining wallets and managing private keys.
Backed By Strong Volumes From Both Spot And Derivatives Markets
Significant spot exchange volume was reported by major exchanges. Bitstamp, Kraken, Gemini and ItBit reported over $1.5 billion of combined daily volume, compared to the $488 million average of the past 6 months. Bitcoin futures as reported by Coinalyze data shows that global derivatives markets are now at over $52 billion. Fuelled by increased derivatives trading volume from exchanges like Okex, Binance and Bybit – despite the significant drop in volume for former derivatives platform leader Bitmex.
Long Positions Are Placing Strong Bets On Even Greater Highs By Christmas
Option traders are also sitting on positions indicating that there’s a 29% chance the price of BTC will be above $20,000 just after Christmas, as reported by Deribit, another major Bitcoin futures and options platform.
With the price breakthrough today, it’s definitely time to think about stocking up on cryptocurrencies for the festive season. Here are some names who are definitely getting Bitcoin for friends and family as gifts:
- Tyler Winklevoss, one half of the twins who own and operate US-based Gemini exchange, gave CNBC his heads-up on Monday that “Cash is Trash” and that Bitcoin will eventually hit $500,000.
- Rick Rieder, CIO of fixed income at BlackRock, shared thoughts that Bitcoin would displace gold due to being more functional than “passing a bar of gold around”.
- Jack Dorsey, Twitter and Square’s CEO, has previously indicated he believes that Bitcoin may be the single currency used by the world in 10 years.
Among all the excitement as Bitcoin price hits a new all time high on Cyber Monday, stay tuned for the latest market trends as they’re released at Oobit. Oobit is a financial service that makes buying and selling digital currency easy, simple and lets you use crypto with the same ease as traditional money. We connect and introduce what would be an endless maze of information surrounding blockchains, and build tools that enhance the crypto user experience.