Bitcoin reached a new all-time high (ATH) of $24,680 on December 25.
Real Vision CEO Raoul Pal even sees the possibility of BTC reaching $1 million.
Bitcoin rose to $24,680 in a short jump around 12:00 UTC. At the time of writing, BTC remains just a touch below $25,000.
Just days after hitting a new ATH, Bitcoin Rush traded at a new high on December 25. While it wasn’t the $25,000 gift some wished for under the tree on Christmas Day, that number is probably within reach, at least psychologically, at the current $24,900.
No XRP Grinch for Bitcoin
The jump also comes after cryptocurrencies in general recovered from a heavy blow. On Dec. 23, the U.S. Securities and Exchange Commission (SEC) opened a case against Ripple.
The SEC claims that Ripple’s XRP is a commodity. BTC hit short-term lows around $22,700 after the announcement. However, Bitcoin has bounced back to its highs fairly quickly, driven by an influx of institutional investors.
Ripple’s XRP, which had flirted with $0.60 on December 20, hit a low of just below $0.23 on December 24 and is now in the mid-thirty cent range.
What will happen now?
The ATH news comes after Glassnode posted a tweet showing just how diversified Bitcoin is now. According to the chart, there are over 800,000 wallets with bitcoin holdings of over 1 BTC, counting from Christmas Eve.
The amount surprised some observers, considering there are 7.8 billion people. However, this is also offset by over 33 million addresses with non-zero balances.
Christmas 2021 on the moon?
The ATH is a nice Christmas present for bitcoin traders. Will it be the bottom in 2021? According to Real Vision CEO Raoul Pal, it could be.
In an interview, Pal argues that this post-Halving cycle is different from the previous ones. The biggest change in the market structure, he says, is that institutional investors are present. That’s hardly anything new.
What Pal is paying attention to, however, is the effect institutional investors are having on the market. He sees less volatility going forward.
He also expects exchange-traded funds to emerge as companies try to avoid grayscale premiums.
Looking ahead to the next cycle, profits are likely to be lower due to the changing market landscape. What about this time? Pal says if Bitcoin behaves as it has in the last two cycles, the peak will be $1 million.