On December 8th, exactly one month ago, Bitcoin was hovering around $ 18,700, and many analysts debated whether the major asset could maintain its bullish momentum and consistently exceed its high value near $ 20,000. Well, how quickly things have changed since then, because in just 30 days, Bitcoin (BTC) has repeatedly evolved into the new ATH, even breaking the $ 41,000 barrier.

Over the past seven days, BTC has seen massive growth of around 41%, with digital assets apparently opening up new opportunities every day. However, this has led to the fact that investors have become more nervous, with many instantly remembering the collapse of 2018, as a result of which most digital currencies crashed within days.

In this regard, Cointelegraph member Markets Mikael van de Poppe believes that although 2020 has been a great year for cryptocurrencies, everyone should apply for a ‘health patch’ in the near future. However, for many, this could be a wonderful opportunity given there is a growing number of up-and-coming cryptocurrency enthusiasts now wanting to participate in the promotion, not just Bitcoin. Regarding the issue, Van de Pope said: “The higher the value of Bitcoin, the more money enters the market and more money can flow towards alternative currencies.”

What makes Bitcoin soar?
The reasons for Bitcoin’s rise are varied, starting with the industry as a whole in a long-term bear market during 2018 and 2019, but despite the downturns, the build-up has never stopped.

Another often overlooked anecdote has to do with the recent halving of BTC, as historical data shows again and again that roughly four to six months into each cycle, the leading digital currency’s value rose sharply – which is what happened this time. Around it too.

Moreover, the digital asset appears to be in line with the equity model created by Dutch institutional investor PlanB. According to the S2F model, scarcity is used as a calculation to determine the value of Bitcoins. While most people use simulations to estimate BTC’s future valuations, PlanB argues that the S2F model can also be used for gold and silver, in addition to other assets.

Ben Chu, CEO of cryptocurrency exchange Bybit, emphasized that this is the “institutional flow that drives Bitcoin,” adding that there is currently a certain level of consensus, or at least mutual pressure, between certain corners of the corporate world that Bitcoin has fragmented. … the wallet: “Those with younger clients totally feel the need to increase their share of BTC.”

Omar Chen, CEO of ZB.com, believes that the corporate purchase has been a catalyst for Bitcoin, rather than the main driver of bullish momentum. He told Cointelegraph that investors from both the cryptocurrency and cryptocurrency sectors are already looking for alternative havens, citing gold and its rally during the start of the COVID-19 pandemic:

“As people and organizations learn more about features and benefits, Bitcoin has become another haven for money. Along with recent negative news about COVID-19 vaccines, investors are increasingly losing confidence in the traditional economy and global economic recovery, making Bitcoin’s optimism stronger.”

Are altcoins closely related to Bitcoin?
As Bitcoin continues to move, even breaking the $ 41,000 threshold, it is undeniable that the tide has also seen a number of pending altcoins take off to new heights. Over the past week, Ether (ETH), Stellar (XLM) and Cardano (ADA) have seen significant gains of 70%, 128% and 70% respectively.

But will the economic fate of the top 10 digital currencies on the market always be linked to Bitcoin? So far, the value of ETH and Litecoin (LTC) has continued to show a strong correlation with BTC, as the latter has seen some serious moves in the market. Nevertheless, Ether could become an asset in its own right even if it still doesn’t outgrow ATH’s $ 1,448 in 2018.

Tor Chan, CEO of AAX Digital Real Estate Exchange, said that although the term “every season” is often used when Ether or other digital currencies begin to rise, its meaning has changed over time. He referred to the 2017 market, when it was all about an explosion of innovation around first coin offerings and that people “got rich as quickly as possible”. Since then, the market is believed to have evolved a lot: “Altcoin’s growth now has to do with portfolio diversification, risk management and rebalancing as traders profit with bitcoin.”

Source: CoinTelegraph