Bitcoin at $23,000: Scarcity Plays a Vital Role

An analysis published earlier this month suggested that Bitcoin will attain a new all-time high before the end of 2020. The analysis stated that a repeat of 2017 could unfold this year. The report revealed that the 2017 surge is the closest to the surge we have in 2020, and going by the 2017 event, a new all-time high may be upon us.

Since December 16, the leading cryptocurrency started the run to a new all-time high. As the surge continued, bitcoin reached new all-time highs and surpassed them. The first of these landmarks was $20,000.  

When BTC got to $20k, many traders were excited because that was the initial set mark by many traders. On the other hand, FOMO started in the market that got more traders buying the asset, and as a result of the FOMO, bitcoin continued to pump through the day till it broke another vital resistance level; the $21k resistance level. 

The coin could not test the $21,000 resistance on December 16 but did in the early hours of December 17. The price surge continued through December 17 and saw vital resistance level flip as the $21k, $21.5k, $22k, $22.5K, $23k, and $23.5k. 

The main highlight of yesterday was when BTC attained a new all-time. As of now, the newest Bitcoin ATH is $23,776. As the crypto asset surged to the new ATH, it was met by severe bearish actions that made it drop to $22,649. The bulls were quick to recover and could not beat the ATH. At the time of writing, BTC is equal to $22,955, bears are still at work, but bulls are edging in the struggle as we see a little uptrend.

On December 10, Coinfomania reported that scarcity is kicking in as MassMutual buys bitcoin worth $100 million. The company is not the first to pick interest in BTC as some other big firms like Microstrategy bought 21,454 (over $240 million at the time) of the digital gold and increase the volume of its holdings later on. The demand for bitcoin is high, and the miners can’t meet up due to the big firms going to stock up the coin.

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Author: Gideon Geoffrey

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Author: Gideon Geoffrey