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Despite the fact that 2020 was a traumatic year for the world, most importantly in the financial sector. Stocks, equities, futures, and cryptocurrencies took the most hit during the year. But the most surprising aspect of 2020 was that most of the, if not all, stocks, futures, cryptocurrencies, and equities that took a hit in the early part of the year 2020 recovered fully at a very fast rate.
Bitcoin, the leader of cryptocurrencies, has been surging for the past few months. Bitcoin broke the 2017 high, $20,000, on the 16th of December, 2020 with an engulfing bullish candle. The strong bullish candle closed above $20,000 for the first time in the history of Bitcoin. This break above the all-time resistance area has been the beginning of the creation of new highs. Bitcoin has been creating new highs since then and this has been a thing of joy for those that have been holding the cryptocurrency for the past few years.
Bitcoin hit the new all-time high, $35,000 on the 3rd day of the New Year, 2021. It has been consolidating since then but the next question to be asked now is that, are there more new highs to be created or are the corrective waves coming any time soon?
Ethereum on the other hand is now trading above $1,000 for the first time in 2 years. It was an amazing end of the year 2020 for most cryptocurrencies. The surge in the general market has taken Ethereum to its new highs in two years, almost at the all-time high that was created in early 2018.
The surge in the crypto market has also caught a lot of eyes, including billionaires in the world. Elon Musk, the CEO, CTO, and Chief Designer of SPACE X, and the CEO of TESLA, recently tweeted about Bitcoin some weeks ago.
Something to wary about: If Bitcoin finally becomes fiat money, will it be surging at a high rate as it has been doing? Wil the government make Bitcoin fiat money? When will Bitcoin be finally regulated by the SEC? These and other necessary questions need to be asked when it comes to Cryptocurrency.
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Tobi is a full time day/swing trader with 3 years’ experience in the currency and commodity market. He is interested in cryptocurrencies in combination to the current financial system. Tobi holds a bachelor's degree in Agriculture.