In the daily trading session, Bitcoin topped another all-time high value after claiming $24,500. This is the Christmas gift for traders and investors who are waiting for the BTC breakout.
As per the data of CoinMarketCap, the price value of the top digital asset has once again reached above $24,000. Currently, the price of the flagship cryptocurrency is standing at $24,504 after an increase of 5.69% over the last 24-hours.
Bitcoin’s Dominance in December
In the middle of the year, various market analysts predicted high levels for the last month of 2020. Their predictions have come true as the current bull run has breached all previous records since the creation of Bitcoin by Satoshi Nakamoto. According to Michaël van de Poppe, the dominance of Bitcoin emerged in the month of December over the last five years. “The likelihood of this to repeat itself is significant, especially combining this with the current sentiment on altcoins. Bullish for Q1 2021,” he said.
The major catalyst for bullish sentiments in the cryptocurrency is the shortage of BTC supply due to purchasing of Bitcoin on the part of institutional investors. The investment companies and assets management firms are investing capital into the top digital asset as they fear high inflation and the weak position of fiat currencies in the coming days. Recently, investment giant MicroStrategy has injected another $650 million over the flagship digital currency. After the second purchase, the accumulated BTC has reached a total of 70,470 Bitcoin worth approximately $1.125 billion.
After the Securities and Exchange Commission (SEC) filed a lawsuit against the operator of XRP coin, the performance of altcoins affected largely, and XRP plunged by 30% in a single day. Besides XRP price rebounding, other cryptocurrencies have also performed well in the daily trading session. Ethereum, the second-largest cryptocurrency by market cap, has surged by 8.24% over the day. Litecoin (LTC) and Bitcoin Cash are up 17.26% and 12.69% over the timeframe of the last 24-hours. In the top ten coins on CoinMarketCap, Chainlink (LINK) has outshined other digital assets after an increase of 15% over the day.
According to on-chain data, the supply of the top digital coin has plunged by 20% since January. According to Rafael Schultze-Kraft, the CTO at Glassnode:
“The supply crisis as I call it, will have an impact on price, but it doesn’t necessarily prevent retail investors or smaller investors from getting into the space.”