Bitcoin presently trades at $21,150 after reaching highs of $21,163 on Coinbase. Analysts postulate three things to happen both on Bitcoin price and the general cryptocurrency market as a result of this monumental feat.
1) Bitcoin Breaking Past $20,000 Will Boost DeFi: Following the recent Bitcoin rally, demand for DeFi is believed to naturally rise as borrowing and trading volumes increase. Many DeFi users often put up tokens such as Wrapped Bitcoin (wBTC) and ETH as collateral to gain additional access to cryptocurrencies. Decentralized Apps and DEXs in the DeFi space will have more room for growth following the Bitcoin (BTC) rally in the short term.
2) Bitcoin Breaking Past $20,000 May Spur a Broader Rally: There are mixed opinions about what comes next after BTC surpasses $20,000 as it subsequently enters price discovery. It may be quite unlikely to predict BTC’s next ceiling until it peaks at a certain level as there is no longer any historical context when it surpasses $20k. Some believe there could be a blow-off top in the $20,000 to $21,000 range as euphoria peaks while others believe in the continuation of the rally till 2021.
Eric Thies, a cryptocurrency trader earlier stated that Bitcoin would likely see a newfound rally in January 2021 that would continue the ongoing uptrend:
“I’d expect with recent news of bank interest and continued retail growth, Bitcoin will soon be in the $20,000 zones and beyond. It’s no doubt we see a continuation of this uptrend and the birth of a new bull run. In January 2021 we will see new highs for Bitcoin”
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