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Bitcoin Back Above $40K as Institutions Lead the Way

As the digital currency has gained over 6 percent over the recent days, the price of bitcoin is approaching the crypto asset's all-time price high. During the first week of January 2021, the last time BTC was this high in value was when bitcoin reached a high of $42k that week. 

While bitcoin appears to be volatile and crash-prone, if the US dollar loses too much value and prices increase, some investors see it as a hedge (aka: inflation). ICYMI: The money printers were shooting dollars out to pump them back into the economy. More dollars = less demand for dollars = fewer valuable dollars = future inflation, with a $27.7T national debt. Meanwhile, the supply of bitcoin is limited. In terms of bitcoin mining, today, about 18.5 million bitcoins have been mined out of the 21 million that will ever be generated (by 2140). Yet cash can, in principle, be printed indefinitely, increasing the risk of inflation. 

Crypto Prices Start to Increase, Bitcoin Passes the $40k Psychological Threshold

Bitcoin (BTC) is up 6% today and hovering over the $40k price handle. BTC has won 17.6 percent over the last seven days, but BTC is just up 2.3 percent today over the last month. Three-month figures show that over the last 12 months, bitcoin has also risen 160% and 311% against the U.S. dollar. 

Lately, even during the high price, BTC has a dominance index of about 62 percent. That's because some big increases have been made in coins like Ethereum (ETH) and bitcoin cash (BCH) and others. BTC's entire market cap has recently hovered around $750 billion at press time, with a 1.16 trillion dollar aggregate market value. 

An Increasing Tide of Institutional Investors and International Adoption 

As the leading cryptocurrency has almost reclaimed all its losses sustained after hitting an all-time high in early January, the price of bitcoin (BTC) soared above $40,000. 

Bridgewater's article showed a sensitivity analysis showing their BTC price forecasts, should private gold investors move to BTC. They estimated that 50 percent of gold capital will shift into BTC, resulting in a price of $85,000 for 1 BTC. 

Bitcoin adoption is growing, but individuals are still not using this coin to purchase an item. Research indicates that exchanges contribute over ninety percent (98.7 percent) to Bitcoin transactions in 2019 and the remaining 1.3 percent to traders. Its presence in the worldwide payment system is still small, and most individuals are only hodling Bitcoin. 

With the rising trend in Bitcoin mining in the Middle East, there is an increase drift towards purchase of antminer machines, digital wallets and accessories. Phoenix Group is the leading supplier of mining machines and accessories in the UAE. Don’t know what type of Bitmain miners to buy for maximum productivity? Get a free consultation with Phoenix today.


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