The turnaround of Bitcoin puts $20000 in sight as the next major test

 

Last week's rebound from a rout by Bitcoin is stoking optimism that for the first time the cryptocurrency might breach $20,000.

The digital asset is trading near the $19,857.03 all-time high set on Monday, after jumping 15% after one of its worst one-day declines on Nov. 26 this year.

"This week we should exceed $20,000, targets being around $20,000-$25,000 anywhere," said Vijay Ayyar, head of business growth for crypto exchange Luno in Singapore. But after that, because Bitcoin appears to get all bullish and then dump," he said, he expects a 30 percent decrease.

Will bitcoin hit a million dollar?

The advocates of Bitcoin claim that a widening investor base means that the largest cryptocurrency is coming of age. Despite reports that digital assets are rapidly being used to diversify portfolios and eliminate some flows from gold, critics say the 170 percent rally this year is a bubble.

As of 3:40 p.m., Bitcoin was valued at about $19,410. Uh, in Tokyo. There was no improvement in the larger Bloomberg Galaxy Crypto Index, which has more than tripled this year.

The rise in Bitcoin to a record this week is likely due to major institutional investors joining the bandwagon and buying a portion of the limited supply of BTC in the midst of a bull run," said Gunnar Jaerv, chief operating officer of First Digital Trust, a Hong Kong-based custodian.

In a Nov. 27 note, JPMorgan Chase & Co. strategists said that investments in and out of the Grayscale Bitcoin Trust, a fund that invests in and monitors the digital asset price, are among the keys to the price outlook.

According to the strategists, if flows into the confidence wane, Bitcoin might suffer if commodity trading advisors and other quantitative funds again unwind long Bitcoin futures positions as probably happened in the slump last week.