The January 2020 rally in Bitcoin has been strong enough to swing perceptions that the cryptocurrency is back into a bullish trend and any hope of cashing in on coins for $6,000-ish won’t be happening. It would appear, according to traders, that Bitcoin’s floor has been reached and the route to the top is well on its way.
There are a number of reasons for Bitocin to be rallying, and even a number of catalysts as to why January has been such a good start to the year for the coin. From the Bitcoin mining reward halving set to take place in May this year to institutional interest hitting new highs, the Bitcoin market is bubbling.
For Peter Brandt, who called the top price of Bitcoin when it reached $20,000 in December 2017, the bull rally can really start kicking off now as the “The weak hands are out; the strong hands own it,” he said in a market discussion with Cointelegraph.
Time to own Bitcoin
Brandt has quickly changed his tune as January has offered a lot of promise and potential for the cryptocurrency market. The veteran trader had a rather negative viewpoint as early as December of last year where he believed cryptocurrency amateurs would push the speculative nature of the market to new lows.
However, Brandt now says that it is worth diversifying one’s portfolio so that it includes a substantial amount of the booming cryptocurrency.
“I think anybody who is interested in what Bitcoin has to offer has to have at least 10-20% of an ownership position relative to the capital that they could commit to Bitcoin in a bigger perspective,” he advised.
It’s over 9,000
Bitcoin, having hovered around the lower reaches of $7,000 for much of the latter part of the year managed to achieve monthly gains of around 35 percent, with 2020 progress alone at 25 percent. This saw the coin top $9,000 at a stage before slightly dipping down, but remaining bullish.
Many are pegging the reason for the cryptocurrency market being up to institutional interest as CME and its new options futures trading has picked up good adoption early on. More so, there is a belief that the situation surrounding the general global market is getting rather dire and as such, Bitocin offers a good hedge against this.