Bitcoin Price: Reverse downward trend
As of 6 pm today (December 27), Bitcoin - the world's largest electronic currency - according to market value decreased by 1.46%, reaching 87,442.36 USD.
This new price contributed to bringing market capitalization to the milestone of 1,746 billion USD, down 22 billion USD. In contrast, trading volume in 24 hours was only at the threshold of 27.89 billion USD, up 6.17 billion USD.
Perspectives and forecasts
The US Federal Reserve (Fed) has just made a noteworthy move by pumping an additional 2.5 billion USD into the US banking system overnight, raising the total liquidity injected into the market from the beginning of the year to about 120 billion USD. However, despite this large liquidity boost, the price of Bitcoin still appears "stuck" and has not been able to overcome the resistance level of 90,000 USD.
On the positive side, Visa has officially announced that cryptocurrencies will become the dominant trend in 2025, with neutral cryptocurrency and integrated AI payments playing a leading role. This development occurred in the context of gold prices reaching a record high of 4,562 USD/ounce, while silver rose to 79 USD/ounce.
These two precious metals are both on a strong upward trend, similar to the 2020 model, when gold (2.075 USD/ounce) and silver (29 USD/ounce) peaked, marking the beginning of major price increases in many other types of assets.
With a series of positive information surrounding Bitcoin, the fact that prices are still "out of strength" compared to gold and silver - assets that continuously break peaks - surprised many investors.
Looking back at 2020, after gold and silver peaked, Bitcoin made a strong breakthrough, increasing from 11,500 USD to 29,000 USD at the end of the year, equivalent to an increase of about 150%. In 2021, the total market capitalization of cryptocurrencies surged from about 390 billion USD to more than 2,000 billion USD. The traditional stock market also recorded positive developments, with the S&P 500 index increasing by 7% in 2020 and continuing to increase by 27% in 2021.
In the context of the Fed continuing to inject liquidity into the economy, Bitcoin can completely follow a similar trajectory, and the price-declining market may be about to close.
Currently, Bitcoin is still kept below the 90,000 USD mark, but the market is experiencing a major "normality" in volatility, which may be the premise for a breakthrough.
This large gap between market expectations and actual historical developments is often unsustainable, and may soon push Bitcoin prices up.
Many investors are pouring money into buy options, betting on rising price scenarios. At that time, market makers are forced to buy in to hedge risks, inadvertently causing small increases to be amplified into stronger increases.
Investors are advised to closely monitor the Fed's next moves and their impact on Bitcoin prices. The market may be slowing down at this time, but history shows that cryptocurrencies often "catch up" very quickly and very strongly.
In Vietnam, the cryptocurrency asset market has been piloted since September 9, the pilot implementation period is 5 years.
However, organizations and individuals participating in the cryptocurrency asset market must comply with relevant legal regulations on preventing and combating money laundering, terrorist financing, financing the dissemination of weapons of mass destruction, electronic transactions, network information security, network security, data protection to ensure security and safety in the cryptocurrency asset market and other relevant specialized laws.
