Bitcoin continues to strengthen its winning rally. Within hours of Bitcoin breaching the $37,000-mark, the world’s largest cryptocurrency went past the $38,000-mark, recording yet another all-time high in the process. At the time of writing, BTC had fallen again, with the crypto valued at $38,001 after corrections set in. However, bitcoin only fell after recording an another-all-time high of $38,187 on the charts. The market value of the entire crypto surpassed $1 trillion earlier today.
Bitcoin is expected to continue its winning rally in the short term.
Currently, optimism and bullish sentiment in the market are high. On-chain analyst Willy Woo forecasting that the market is likely to see a BTC double pump bull market if the price continues to climb at the same pace. According to Woo, the leading cryptocurrency double pumped in 2013 on the back of huge capital inflows, while the second-largest cryptocurrency, Ethereum, double pumped in 2017 after huge capital inflows came in as well. “BTC in 2021 is facing institutional inflows,” he explained, adding that this is what happens when large inflows are injected into a “smallish asset.”
Looking at the models I have on BTC, they suggest a double pump bull market, else the models will break at the current rate of price climb.
— Willy Woo (@woonomic) January 6, 2021
Increased institutional interest pushes bitcoin to new heights.
One of the main reasons for the current bitcoin rally is the growing institutional interest in the leading cryptocurrency. Bitcoin’s advance also reflects increasing expectations of it becoming a mainstream payment method, with PayPal opening its network to cryptocurrencies. High profile investors like Paul Tudor Jones, for example, have been buying bitcoin. Many bitcoin bulls say the cryptocurrency is akin to “digital gold,” a potential safe-haven asset and a hedge against inflation. Bitcoin has witnessed over 380% growth in the last 12 months.