Bitcoin Price Surges Above $28,000 – Who Organized the Rally?

After Bitcoin price broke above $25,000 on December 25, BTC continued to rise and took a new record mark above $28,000. It is possible that the rally was made by the institutional investor?

December 28, 2020 | AtoZ Markets – Despite Bitcoin’s crazy pre-New Year rally, retail investor interest in BTC is still growing, according to analyst firm Skew. What’s in store for Bitcoin in the near future? Will retail investors return?

Recently, there is an opinion that Bitcoin is getting more expensive against the background of institutional demand. After Grayscale and Paypal started buying up cryptocurrency faster than it is mined, it seems that the price is going up all the time.

When BTC hit $25,000 on December 25, the bulls didn’t stop. Interestingly, Bitcoin price broke through the $28,000 mark on December 27 – one of the quietest working days of the year.

Due to the New Year and Christmas holidays, many large banks, businesses, and other financial institutions are closed. Then who are these whales pushing the price up?

Who organized the Bitcoin rally above $28,000?

It turns out that, despite the high institutional interest, which is probably the driving force behind growth, this cannot explain the pre-holiday race by this alone. Indeed, apparently, on the eve of the New Year, bitcoin is being bought up by retail traders.

But retail interest has yet to hit 2017 levels, when BTC first tested the $ 20,000 mark amid a massive bull rally, according to research by analytics platform Skew.

In support of this, Skew has provided a Google Trends chart for the word bitcoin. Basically, it shows how many times users entered the word “bitcoin” into the search box, as well as links to it in Google.

Blockstream CEO, Adam Back also drew attention to this. In a comment posted on Twitter, he suggested that retail investors rather than institutional investors are behind the $25,000 barrier and the current Christmas rally in Bitcoin.

If under such conditions, bitcoin managed to move its record high three times and break above $25,000, this can mean only one thing. The main driving force behind this rally was retail investors, not institutions that were out of service for the Christmas celebration.

BTC has not exhausted its potential yet

Despite the fact that Bitcoin has reached record highs and its market capitalization has approached unprecedented levels, it still has room for growth.

After all, some believe that Bitcoin’s bullish rally is not getting as much media coverage as it was in 2017-2018. In addition, it is possible that ordinary guys have not yet entered the market, pushed by intuition, hype, and the syndrome of loss of profits.

“Bitcoin rate” in Google queries

Another growth factor could be the bonuses that bankers and other highly paid professionals receive at the end of the year. Some professional traders buy BTC knowing how big the institutional interest is within the system.

It should also be noted that Bitcoin holders move coins to offline wallets and withdraw them from exchanges, and this increases their scarcity in the market. It seems that most of the cryptocurrency is being transferred to cold storage, leading to higher prices.

Ordinary people and bigwigs from the financial world are able to pump the market, even more, thanks to the surge in interest in the retail segment. Who knows how far they will push prices when banks and financial companies resume operations in January.

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