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Bitcoin breaks $30,000, liquidates $100m of short positions

Updated: Aug 31, 2024
Published: Jan 2, 2021
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After a long and arduous bear market, Bitcoin has come out from the ashes a true winner. The prominent and dominant cryptocurrency is now trading at $30,000 per 1 Bitcoin.

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The New Rally

Since the March 2020 crash, Bitcoin has been relentlessly rushing to the upside. The timing of the economic impact of the pandemic announcement and Bitcoin's rise are not a coincidence, there is a strong correlation. Price went all the way from sub-$4,000 to $30,000+ today.

[caption id="attachment_22109" align="aligncenter" width="2880"]size-full wp-image-22109 $4,000 -> $30,000+[/caption]

Institutional Capital

As the pandemic came in, businesses needed help which pushed Central Banks to print unprecedented amounts of money. This worried investors of upcoming inflation, they needed a way to protect their capital. An asset fully governed by code with no place for human discretionary decisions or corruption with a fixed supply schedule became increasingly interesting.

This is where legendary investors such as Paul Tudor Jones had begun expressing interest in owning Bitcoin, many others followed; including corporations investing part of their treasuries into it.

Risk

Pre-March 2020, there was a career risk in owning Bitcoin in Traditional Finance; it was viewed as "internet money". Now the risk has completely flipped and it became risky to not own Bitcoin. This is the current institutional trend we are witnessing.

The second aspect of risk is the probability of Bitcoin's success has increased significantly from when it was trading at $4,000 as the market is confirming acceptance with increased prices.

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