The price of Bitcoin breaks above $28,000 as the cryptocurrency continues its rally throughout December. Minutes after hitting $28,400, the cryptocurrency slumped down to $27,200 and has subsequently fallen to $26,957 over the past several hours. The digital asset retreated below the psychological $28,000 in the midst of massive profit cashouts by retail traders. The cryptocurrency, however, has now a market value exceeding $500 billion, worth more than Visa, Mastercard, or Walmart.
Bitcoin Hits Another All-Time High of $28,000
Bitcoin had a meteoric rise throughout December 2020. On Dec. 16, the cryptocurrency exceeded $20,000. Four days later, on Dec. 20, it crossed another milestone of $24,000. Earlier today, the cryptocurrency briefly touched the $28,000 mark.
Earlier this month, blockchain analysis company, Chainalysis revealed that Bitcoin’s resurgence in its price was mainly boosted by institutional investors.
For instance, over the past three months, institutional investors added $11.5 billion worth of bitcoin. Institutional investors were perceived to have driven this record-setting run. Some of them include Anthony Scaramucci’s Skybridge Capital investing $25 million in December. MassMutual investing $100 million in the same month, while Guggenheim invested for up to 10% of its $5 billion macro funds.
With the supply of bitcoins capped at 21 million, investors see the cryptocurrency as a hedge against inflation as governments and central banks continue churning out stimulus packages and money printing in response to the COVID-19 pandemic.
Bitcoin’s Market Capitalization Exceeded $500 Billion
The initial bull run of the cryptocurrency ignited in October when its price was just about $10,500. The cryptocurrency has nearly tripled since then. The price of the cryptocurrency is almost seven times higher than its price in mid-March, when the global financial market was at its lowest due to the pandemic, taking down the crypto market as well.
The digital asset has gained by nearly 12 percent on a day to day basis, with its market capitalization exceeding above $500 billion. The dominance index report for the cryptocurrency has also exceeded by 70% for the first time since March 2017.