News & Analysis

Who let the bulls out? Bitcoin breaks past $23k

December 18, 2020

By Klavs Valters
 @klavsvalters

$20k, $21k, $22k, $23k – that is how many price levels Bitcoin broke after surging by over 12% in the last 24 hours. The world’s largest cryptocurrency reached its highest ever level of around $23,421, adding fuel to the bull run.

Bitcoin has enjoyed a tremendous run over the last 7-days after dipping down to around $17,600 last Friday. It’s up by around 25% in the last week. Other major digital currencies have also been trading higher, both Ethereum ($648) and XRP ($0.60) up by 15% and 4%. Litecoin making the most gains out of the top 5, breaking past the $100 level and up by over 36%.

Top 5 digital currencies by market cap* 

  1. Bitcoin (BTC) at $425,168,826,272
  2. Ethereum (ETH) at $73,749,763,112
  3. XRP (XRP) at $27,338,229,806
  4. Tether (USDT) at $19,932,859,433
  5. Bitcoin Cash (BCH) at $6,744,818,353

*Market Cap as of 17/12/2020

Source: CoinMarketCap

American Express enters the crypto market 

This week we saw another big name to enter the digital currency market. American Express, the US financial services giant announced that it has invested in an institutional crypto trading platform – FalconX. The company did not disclose the actual size of the investment.

”Amex Ventures invests in startups as a way to better understand emerging areas of the payments ecosystem, and we are pleased to support FalconX as it continues to drive innovation in the digital asset space, including digital currencies” said Harshul Sanghi, global head of Amex Ventures.

Scepticism from the economists

With all the positive news for cryptos, it is always fair to have scepticism towards them too. David Rosenberg, the President and Chief Economist of the Canada-based Rosenberg Research, criticized Bitcoin and called it a ”massive bubble” – a set of words that have been heavily used to describe it during the first bull run in 2017.

”Bitcoin is a massive bubble. The one thing we know about gold, we know the supply curve of gold with certainty. We don’t know the future supply curve of BTC, people think they know but they don’t really know”, he said during an interview with Bloomberg.

Nouriel Roubini, an American economist who teaches at New York University’s Stern School of Business and is chairman of Roubini Macro Associates LLC described Bitcoin as ”mother of all bubbles”.

”Bitcoin has no intrinsic fundamental value, use or utility or any other service. So, it is a pure speculative manipulated asset & bubble with no fundamental value. It is not even a hedge against other financial assets. Investing in BTC is equivalent to take your portfolio to a rigged illegal casino & gamble; at least in legit Las Vegas casinos, odds aren’t stacked against you as those gambling markets aren’t manipulated the way BTC is. Instead, BTC is manipulated heavily by Tether & whales”, Roubini said last month.

By Klavs Valters
 @klavsvalters

Disclaimer: The articles are from GO Markets analysts, based on their independent analysis or personal experiences. Views or opinions or trading styles expressed are of their own; should not be taken as either representative of or shared by GO Markets. Advice (if any), are of a ‘general’ nature and not based on your personal objectives, financial situation or needs. You should therefore consider how appropriate the advice (if any) is to your objectives, financial situation and needs, before acting on the advice. If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for that product before making any decisions.

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