After a strong rally overnight, the price of Bitcoin (BTC) broke through $34,700 and hit a record high. The original cryptocurrency ETH on the Ethereum blockchain exceeded $800 for the first time since May 2018.
Bitcoin’s sudden surge is surprising because it was revised significantly to around $30,300 on January 2. Within 24 hours, BTC rose from $30,300 to $34,778, a 14% rise.
What triggered the rise of Bitcoin and Ethereum?
On January 2nd, when the price of Bitcoin exceeded $33,000, some whales and high-net-worth investors warned that an order to sell 150 Bitcoins might correct the market.
The Bitcoin trader under the pseudonym “i.am.nomad” wrote:
“Selling 150 BTU on the market will bring the whole thing back. The higher the Lmao price, the higher the retail price, and the lower the support provided.”
Within a few hours, he realized the risk of Bitcoin correction due to scarce orders, and BTC fell sharply.
However, Bitcoin quickly rebounded from the initial decline and set a new record high within 24 hours.
The main catalyst for the rise of Bitcoin is the establishment of BTC institutions on Coinbase and the temporary pressure on Binance futures.
According to Cointelegraph, in the past three days, Bitcoin transactions on Coinbase have been significantly higher than other major exchanges.
This means that despite the premium, brave buyers on Coinbase have been accumulating BTC.
The highest Bitcoin is more than $34,000, and the average merchant income is at the highest level.
At the same time, many traders at Binance Futures have already sold Bitcoin and may expect the price of Bitcoin to be around $30,000. As Coinbase buyers push BTC to rise further, there is temporary pressure. Santiment analyst pointed out:
“For those who want the #Bitcoin correction to begin in 2021, the creation of #AllTimeHigh $34,000 10 minutes ago shows how painful BTC has been for the past 10 months. The average return of dealers is not high. Since 2019 Domain names since June
Ether got rid of the powerful technical power of Bitcoin. The Ethereum/USD pair exceeded $800 for the first time since the beginning of May 2018, indicating that momentum has reappeared after the recession in December.
A cryptocurrency trader under the pseudonym “Mayne” stated on January 2 that Ethereum may rise to $800 before it rises. He said:
“The ETH argument is still on the right track. The daily closing price is $620, and we are moving towards $800. I created a large long position in December, and I hope ETHBTC can maintain a higher dollar low. I think this will be great. In order to make BTC’s commitment to ETH longer in December, ETH is expected to be better than in January.”
What happened after that?
As CME plans to launch ETH futures in February, Ethereum will become another major catalyst.
Given the high demand for Bitcoin by institutions since the first quarter of 2020, the demand for Ether in the listing may also increase.
At the same time, the price of Bitcoin is on an upward trend, hitting new highs every day. Given that the so-called supply bottleneck and institutional buying frenzy have now spread to the retail sector, there may be more room for a rebound, because $35,000 may be the next psychological price to break.
As reported by Cointelegraph, six-figure forecasts have become more and more common in recent months, especially as gains have surpassed all-time highs.