Bitcoin (BTC) traded above the $22,000 level at press time after having crossed the crucial psychological $20,000 mark in the preceding 24-hour period.
What Happened: Wednesday’s surge in the apex cryptocurrency led the Grayscale Bitcoin Trust to close 10.91% higher at $25.81.
Major altcoins followed bitcoin’s lead and traded higher at press time. Ethereum (ETH) traded 10.06% higher at $642.65, while Litecoin (LTC) traded 14.97% higher at $92.
Bitcoin Cash (BCH) was up by 8.29% at $309.11, Chainlink (LINK) traded 8.07% higher at $13.42, while XRP traded 23.75% higher at $0.56.
Guggenheim Partners chief investment officer Scott Minerd said Wednesday that, as per their “fundamental” work, bitcoin should be around $400,000, Bloomberg reported.
Alex Mashinsky, CEO of Celsius Network, said that a dip to $14,000-$16,000 levels is inevitable in the short-term and that might be the “last time most of us will have a chance to buy bitcoin below $20K levels ever again.”
“Settle in, because we will be visiting the $20-$22K level at least half a dozen times before we break through to the $30K range later in 2021,” said Mashinsky.
Saxo Capital Markets global macro strategist Kay Van-Petersen said retail investors have so far been largely “out of this rally” and bitcoin’s price will “now go from linear to parabolic.”
According to Hxro CEO Dan Gunsberg, bitcoin’s next real objective will be testing the level of $36,000 if it keeps up the momentum, Bloomberg reported.
Why It Matters: The surge in bitcoin prices means that Institutional investors like MicroStrategy Incorporated, which began relying on bitcoin as a primary treasury reserve in September, when the price of bitcoin was under $11,000, have effectively doubled the value of their holdings.
Last month, PayPal CEO Daniel Schulman termed his company’s foray into cryptocurrencies as “just the beginning of the opportunities.”
In October, Jack Dorsey-led Square invested $50 million in 4,709 bitcoins — buying each unit at roughly $10,618. That investment has returned nearly 109.3% and is worth $104.67 million as of press time.
Price Action: Bitcoin traded 14.88% higher at $22,259.90 at press time.
This story originally appeared on Benzinga.
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