Bitcoin Price Crosses $12,000 For the First Time In Last Two Months
On Tuesday, October 20, Bitcoin surged past the crucial resistance of $12,000 making a strong move northwards. With this move, the world’s largest cryptocurrency continues to extend its dominance in the crypto market.
At press time, Bitcoin is trading at a price of $12,335 with a market cap of $228 billion. With this, BTC dominance surpasses 60% of the overall cryptocurrency market. This is for the first time in the last two months that the BTC price has moved above $12,000. The last it did was during mid-August 2020.
Analysts are saying that Bitcoin can possibly continue the lead ahead while inching closer to its all-time high of $20,000. Institutional participation in Bitcoin has increased over the last few months. Big players from the traditional markets like Stone Ridge, Square, and MicroStrategy have invested millions of dollars during this period.
Bitcoin continues to be an attractive bet for traditional institutions against the uncertain global economic condition. Digital Asset manager Grayscale recently reported that reported a massive inflow in its Grayscale Bitcoin Trust investment instrument.
Grayscale recently released its Q3 2020 report saying: “Grayscale® Bitcoin Trust continued to lead investment demand, with inflows of $719.3 million in 3Q20. The Trust’s AUM has grown 147% YTD, making it one of the fastest growing investment products. The majority of investment continued to come from institutional investors, accounting for 81% of investment in 3Q20”.
Apart from Bitcoin, the altcoin space also seems to be doing well currently. All of the top ten altcoins are currently in green with gains anywhere between 2-7%.
However, market analysts are suggesting that Bitcoin will continue to extend lead as more money will flow from the altcoin space to Bitcoin (BTC). Needless to say, institutions have been biased towards the world’s largest cryptocurrency over the last many years.
Apart from Bitcoin, we have seen massive money flow in the DeFi space this year. However, the DeFi market recently entered a major correction with many DeFi token reach sky-high valuations.
Analysts say that DeFi is still in the early stages of development although it promises a bright future for decentralized financing. Chainlink (LINK) is the only DeFi token that occupies a spot in the top-ten cryptocurrencies by market cap.