Weekly Market Recap - Dec 14
Overview
Bitcoin aims to break the pivotal level of $20,000 for the third week in a row since the start of the month. On Friday, BTC hit around $18,000, but has rebounded well over the weekend and is sitting a little above $19k today. There are still many sell orders right around the $20k level, as BTC holders are afraid this bull run mirrors 2017’s bull run (which was followed by a 70% collapse), and will result in another price collapse. Although there is much resistance, it is unclear which side the market favors.
Market Recap
Since the start of the pandemic, many publicly traded corporations and fund managers have adopted Bitcoin and cryptocurrency, with companies like Square and MicroStrategy dominating headlines. MassMutual Life Insurance Co. on Thursday made a $100 million investment in Bitcoin, as well as a $5 million equity stake in NYDIG. NYDIG, or New York Digital Investment Group, is one of the fastest-growing institutional crypto shops, and provided MassMutual with the buy.
With this announcement, according to JPMorgan, Bitcoin could find an additional demand of $600 billion if pension funds and insurance firms in the U.S., EU, U.K., and Japan allocated 1% of assets to BTC. Currently, there are existing regulatory hurdles that could complicate investment in the space for such firms, limiting their participation in the market. The increasing level of institutional presence is undoubtedly good for BTC and the cryptocurrency industry as a whole and is forcing all legitimate funds to seriously consider investing. Nexus continues to support both institutions and retail traders with our deep liquidity pool and unmatched pricing.
Ethereum, along with almost all altcoins, is mirroring BTC’s price movement closely. All eyes are on BTC’s price movement until the end of 2020, as breaking the critical resistance of 20k would mean uncharted territory for the market, and could cause a correlation between BTC and other cryptocurrencies to diminish.
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