Most days, a sudden fall of 6.2% would be headline news… but these are not normal times.
After breaking $20,000, $21,000, $22,000 *and* $23,000 in just 24 hours, it seemed inevitable that Bitcoin’s insane surge would face challenges somewhere.
And on Thursday morning, it did. On some exchanges, BTC hit highs of $23,776.94 — and crashed down to $22,300 just half an hour later. Most days, a sudden fall of 6.2% would be headline news… but these are not normal times.
As frenzied activity continued in the markets, Bitcoin quickly recovered and returned to $23,000 — but given this violent rejection, it’s possible that the world’s biggest cryptocurrency may need several attempts to crack $24,000.
The question now is whether or not BTC will be able to sustain this momentum all the way through Christmas, when trading volumes tend to subside and return to levels that we typically see at weekends. There’s little doubt that institutional investors have played a big role in the surge, but their presence may not be felt in the final week of December.
In a report released on Dec. 17, Stack Funds argued that there’s plenty to be optimistic about as 2020 draws to a close — with renewed optimism that Congress is about to pass a stimulus package that’s worth almost $900 billion. It wrote:
“Having tested $20,000 several times over the past few weeks, Bitcoin broke resistance to gain 20% over the week surpassing $22,150. We are expecting this inertia to generate ripple effects going into the end of the year as momentum continues to skew Bitcoin to the upside.”
At the time of writing, Bitcoin has now risen by 27.7% in the space of a week — and 17% of that was in the past 24 hours.
Over the past day, Ethereum has surged 11.6% to hit $663, and XRP has ballooned by a staggering 32.1% to reclaim $0.60.