After testing investor patience for three weeks, Bitcoin price has finally broken above $20,000 to reach fresh all-time highs.
December 16, 2020 | AtoZ Markets – Bitcoin (BTC), which boasts the largest market capitalization of crypto assets, has exceeded the long-sought $20,000.
Breaking above $20,000, which represented a significant hurdle in the mindset of most traders, is entirely new ground for Bitcoin and opens the doors to rally over the course of 2021, according to some analysts.
That rise would bode well for other crypto sectors as well, including decentralized finance (DeFi), according to DversiFi’s CEO Ross Middleton.
“Bitcoin profits are partially recycled back into other smaller tokens later in the bull cycle. In 2017 that was other blockchains such as Ripple, Litecoin and EOS,” said Middleton. “However, this time around, funds are likely to flow into the new crop of DeFi blue-chip projects, built on Ethereum.”
DiversiFi’s CEO pointed to DeFi protocols Aave, Compound, Synthetix and Yearn Finance as his picks of where the capital could flow.
And while bitcoin is now up over 180% on a year-to-date basis, gold has added just over 22%. Bitcoin, often touted as digital gold, has decoupled from the yellow metal this quarter with a more than 80% rally. Meanwhile, gold has suffered a 1% drop, with investors pulling money out of exchange-traded funds.
Meanwhile, other prominent cryptocurrencies such as Ethereum, Litecoin, and Ripple are still down 58% to 88% from their respective lifetime highs reached three years ago.
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