{"id":134992,"date":"2020-12-16T21:30:00","date_gmt":"2020-12-16T18:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitcoin-smashes-historical-high-above-20k-heres-why-its-different-from-2017\/"},"modified":"2020-12-16T21:30:00","modified_gmt":"2020-12-16T18:30:00","slug":"bitcoin-smashes-historical-high-above-20k-heres-why-its-different-from-2017","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitcoin-smashes-historical-high-above-20k-heres-why-its-different-from-2017\/","title":{"rendered":"# Bitcoin smashes historical high above $20k. Here&#8217;s why it&#8217;s different from 2017"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a348aebd9180\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a348aebd9180\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-smashes-historical-high-above-20k-heres-why-its-different-from-2017\/#Bitcoin-as-a-hedge\" >Bitcoin-as-a-hedge<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-smashes-historical-high-above-20k-heres-why-its-different-from-2017\/#Institutional_demand\" >Institutional demand<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-smashes-historical-high-above-20k-heres-why-its-different-from-2017\/#The_rise_of_illiquid_wallets\" >The rise of illiquid wallets<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-smashes-historical-high-above-20k-heres-why-its-different-from-2017\/#Steady_growth_of_active_addresses_wallets_holding_at_least_01_BTC\" >Steady growth of active addresses, wallets holding at least 0.1 BTC<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Bitcoin smashes historical high above $20k. Here&#8217;s why it&#8217;s different from 2017  <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>The Bitcoin (BTC) price surged to all-time highs on Wednesday, zipping past $20,000 in a show of bullish momentum for the flagship cryptocurrency.\u00a0<\/p>\n<p>Although it\u2019s easy to draw parallels between this year\u2019s bull market and the speculative frenzy that drove the 2017 rally, the foundations underpinning Bitcoin are much stronger today than they were just a few years ago. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bitcoin-as-a-hedge\"><\/span>Bitcoin-as-a-hedge<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While there are many metrics that could explain Bitcoin\u2019s resurgence this year, it\u2019s important to start from the very top. Unlike in 2017, investors today are accumulating Bitcoin with a clear purpose. The digital currency\u2019s effectiveness as a hedge against inflation is leading to wider mainstream adoption, especially among savvy investors who understand monetary policy.<\/p>\n<p>Since inception, Bitcoin has been a superior store of value than any other asset. The May 2020 deflationary halving event highlighted Bitcoin\u2019s scarcity to a wider audience than ever before. <\/p>\n<p>As crypto analytics firm Chainanalysis <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blog.chainalysis.com\/reports\/bitcoin-price-surge-explained-2020\">reported<\/a> last month:<\/p>\n<blockquote><p>\u201c[&#8230;] first-time Bitcoin buyers and buyers looking to unload fiat currency for Bitcoin as a hedge against worrisome macroeconomic trends are responsible for much of the current demand.\u201d<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Institutional_demand\"><\/span>Institutional demand<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>2020 could go down as the year that major institutions flipped the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">script<\/a> on Bitcoin\u00a0\u2014 perhaps permanently. Unlike in 2017, when Bitcoin\u2019s surge was mainly driven by retail speculation, the 2020 bull market appears to be guided by the cold, calculating hands of smart money. <\/p>\n<p>Cointelegraph has been reporting for months about Bitcoin\u2019s gradual uptake by institutional investors. Paul Tudor Jones, Stanley Druckenmiller, Grayscale, PayPal, Square, MassMutual, MicroStrategy, Ruffer Investment Company \u2014 these are just a few of the corporate and institutional names that have added Bitcoin to their holdings.<\/p>\n<p>Even Jim Cramer, the famed TV personality from CNBC\u2019s Mad Money, bought the recent Bitcoin dip under $18,000.<\/p>\n<p>Such names were absent from the retail-driven euphoria of 2017 when FOMO, or fear of missing out, was the main catalyst behind Bitcoin\u2019s brief spike towards $20,000. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_rise_of_illiquid_wallets\"><\/span>The rise of illiquid wallets<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Another striking difference between the 2020 bull market and the one that preceded it in 2017 is the amount of Bitcoin held in so-called illiquid wallets. <\/p>\n<p>Chainanalysis describes illiquid wallets, also called investor-held Bitcoin, as wallets that send less than 25% of BTC they\u2019ve ever received. Using this metric, illiquid wallets currently represent more than three-quarters (77%) of the 14.8 million BTC mined that isn\u2019t characterized as lost. Chainanalysis says this amount \u201chasn\u2019t moved from its current address in five years or longer.\u201d <\/p>\n<p>The firm <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blog.chainalysis.com\/reports\/bitcoin-price-surge-explained-2020\">explains<\/a>:<\/p>\n<blockquote><p>\u201cThat leaves a pool of just 3.4 million Bitcoin readily available to buyers as demand increases.\u201d<\/p><\/blockquote>\n<p>As the following chart illustrates, the amount of \u201cinvestor Bitcoin\u201d held has surged dramatically since late 2017 when prices last peaked. In other words, investors are buying and holding BTC as opposed to flipping it for quick profits.\u00a0<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-12\/2adadc55-597c-42f9-96ae-ed9ebe3a746b.png\"><figcaption style=\"text-align: center;\"><em>The striking divergence between \u201cTrader Bitcoin\u201d and \u201cInvestor Bitcoin\u201d since 2017 by Chainanalysis<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Steady_growth_of_active_addresses_wallets_holding_at_least_01_BTC\"><\/span>Steady growth of active addresses, wallets holding at least 0.1 BTC<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Unlike in 2017, when Bitcoin network activity peaked with the BTC price, the number of unique active addresses has grown steadily for the past two years, according to data provider Glassnode. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-12\/5886e355-e5ce-48de-9a26-a406e1beb266.png\"><figcaption style=\"text-align: center;\"><em>The number of unique active Bitcoin addresses compared with price by Glassnode<\/em><\/figcaption><\/figure>\n<p>What\u2019s more, roughly 19.6 million addresses either sent or received Bitcoin in November, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/decrypt.co\/50099\/active-bitcoin-addresses-november\">marking<\/a> the third-highest monthly total ever recorded. <\/p>\n<p>Data from Glassnode also reveal that, by June of this year, a record number of investors were holding at least 0.1 BTC. As Cointelegraph reported, more than 2.75 million addresses have been consistently holding more than this amount since April 2019.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/bitcoin-smashes-historical-high-above-20k-here-s-why-it-s-different-from-2017\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Bitcoin smashes historical high above $20k. Here&#8217;s why it&#8217;s different from 2017 &#8221; The Bitcoin (BTC) price surged to all-time highs on Wednesday, zipping past $20,000 in a show of bullish momentum for the flagship cryptocurrency.\u00a0 Although it\u2019s easy to draw parallels between this year\u2019s bull market and the speculative frenzy that drove the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":134993,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2020-12\/5caf52da-ffb0-4ee9-bc2a-811ffb3edc86.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,75819,74863,74355],"class_list":["post-134992","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-bitcoin-wallet","tag-cryptocurrencies","tag-adoption"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/134992","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=134992"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/134992\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/134993"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=134992"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=134992"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=134992"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}