Bitcoin finds new support.
Bitcoin continues to touch new all-time highs as we close out 2020. Despite ongoing bullish sentiment throughout the industry though, bitcoin did see a correction over the weekend.
As of writing, the price of bitcoin is $22,913.
- Bitcoin is down about 4% in the last 24 hours
- Bitcoin is up almost 19% in the last week
- Bitcoin is up about 23% in the last month
Bitcoin might have found support at $22,000.
After reaching new all-time highs above $24,000, the world’s largest cryptocurrency by market cap fell over the weekend.
Following a drop to the low $22,000s, bitcoin quickly bounced back, settling around $23,000. Because bitcoin held above $22,000 amidst the pullback, we are watching to see if new support exists there.
We cannot, however, rule out a further pullback to previous support at $18,500. If we see that significant pullback, $17,500 also remains in play.
Last week, the U.S. Treasury Department proposed new requirements that would force banks and exchanges to maintain and submit customer information for any cryptocurrency transfers to “unhosted” wallets.
What does this mean?
In short, if you use a crypto wallet that has not required you to provide any personal identification in order to use it, you may soon have to do just that.
There’s a lot of details to be ironed out. Read this Bloomberg story that breaks down the proposed regulations.
The Silver Lining
More regulation means that mainstream adoption is real. We’re at a point where progress seems inevitable.
The Crypto Purist Take
On the other hand, more regulation and know your customer regulations diminishes the entire point of why bitcoin and certain cryptocurrencies exist.
MicroStrategy bought bitcoin… again!
CEO Michael Saylor announced via Twitter that the company bought another 29,646 BTC for a total of $650 million. That’s an average of roughly $21,925 per BTC.
MicroStrategy now #HODLs 70,470 bitcoins purchased for $1.125 billion at an average price of $15,964 per bitcoin.
The company bought the dip, reaffirming long term bullish sentiment held by a growing list of large cap bitcoin holders.
MicroStrategy and others continuing to double down on their faith in bitcoin is promising for 2021 price action. We previously mentioned new calls for a $100,000 bitcoin within the next year.