Bitcoin (BTC) continues its blistering holiday weekend rally, hitting $ 27,000 on December 27. Additionally, Bitcoin’s market cap has surpassed half a trillion dollars for the first time ever.
Bitcoin market capitalization exceeds $ 500 billion
The new record highs for Bitcoin come less than three days after breaking resistance at USD 24,000. This also means that the BTC price has now doubled in the past two months, after winning nearly $ 10,000 in the month of December alone.
Bitcoin’s market cap is also now over $ 510 billion, placing it just below Warren Buffett’s Berkshire Hathaway, the tenth largest company in the world. This comes less than a day after surpassing Visa’s market capitalization.
Such as Cointelegraph reportedThis weekend’s rise has placed Bitcoin’s price above the average trend line of the popular stock-to-flow model (approximately $ 24,900), which predicts an amount of $ 100,000t by December 2021.
At the same time appears to be the current bull cycle different and more sustainable than in 2017 with many traders expecting more upside potential in the coming months. The reasons for this include a frenzy of institutional buying, stronger foundations, less available supply on exchanges, and yet relatively little interest from retail buyers.
However, this does not rule out the possibility of a major downturn in the near term, especially as the BTC price appears to be climbing towards the next psychological resistance of USD 30,000.
“Vertical movements often end in a quick correction (think summer ’19)? Those quick corrections are made to establish a sideways range,” warned Cointelegraph Markets analyst Michael van de Poppe on December 27. He added:
Don’t get caught out of a correction. The bull market will last longer. Have a longer horizon.