New All-Time High or Not New All-Time High for Bitcoin, That Is the Question
When the $20K is exceeded, everyone will agree.
|Sylvain Saurel||Dec 1, 2020||1||1|
After a correction as strong as it was short, the Bitcoin price resumed its bull rally on November 30, 2020. Bitcoin ended the month with a bang as its price rose from just over $18K to close to $20K.
I say close to $20K because you will see that the price that Bitcoin was able to reach yesterday makes debate.
For many people, Bitcoin reached a new All-Time High on November 30, 2020. For others, Bitcoin has not yet broken its 2017 year-end record.
The general media obviously jumped at the opportunity to make headlines saying that Bitcoin has broken its All-Time High (ATH). Many had probably already prepared an article for the occasion, and it was too tempting to release it without even checking if Bitcoin had really hit a new ATH.
Many wonders why Bitcoin’s ATH is so controversial. The reason is simple: the Bitcoin price differs for each exchange. So, the Bitcoin ATH is not the same on Coinbase as it is on Binance.
Under these conditions, the Bitcoin ATH has been broken yesterday on some exchanges, but not on others.
After various researches, it appears that the Bitcoin ATH was the following, before yesterday, on the major exchanges of the market:
As you can see, Bitcoin’s ATH can differ up to $300 between the leading platforms on the market.
Yesterday, Bitcoin reached a new ATH on Kraken, Bitstamp, Binance, and Huobi.
Nevertheless, many are relying on Coinbase, as it is the largest American platform in terms of trading volumes. It was also the largest at the end of 2017. On Coinbase, the Bitcoin price reached a high of $19,873 on November 30, 2020.
Bitcoin did not hit a new ATH on Coinbase. It wasn’t far off, but the new ATH hasn’t been reached yet.
Frequently regarded as the reference site for providing an aggregated price for Bitcoin based on prices observed on the various exchanges, CoinMarketCap has an ATH for Bitcoin of $20,089 reached on December 17, 2017.
To understand what this price means, here is the methodology used by CoinMarketCap to calculate this price:
“The price of any cryptoasset is a volume weighted average of market pair prices for the cryptoasset. The higher percentage of volume contributed from the pair, the more influence it has on the average price. The rationale for using a weighted average is because in general, markets with higher volume have higher liquidity and are less prone to price fluctuations.”
It incorporates volume to limit publishing wild price swings from exchanges with low liquidity.
Yesterday, the Bitcoin price reached a high of $19,749 on CoinMarketCap:
So Bitcoin did not break its ATH on CoinMarketCap.
Moreover, some people frequently use the price reported by CoinDesk with its Bitcoin Price Index as a reference. With this index, Bitcoin’s ATH was $19,783 before yesterday.
For those using CoinDesk’s Bitcoin Price Index, Bitcoin did register a new ATH yesterday, reaching $19,850.
As you can see, the issue is still not settled as it is now December 1, 2020. After a sudden sell-off that brought the Bitcoin price down to $18,998 a few hours after this approach to a new ATH, the Bitcoin price has rebounded to stabilize around $19.4K as I write this.
The next few hours could see everyone agreeing on a new ATH for the Bitcoin price. I see only one way to answer this question definitively in the affirmative: breaking the $20K mark.
When the Bitcoin price has passed $20K, and it’s only a matter of time, no one will question whether or not Bitcoin has really hit a new ATH. Things will be clear, and we will be able to talk about the real start of the Bull Run.
That could be done in the next few hours, and why not even when you read this story.
In the meantime, I think it’s important to remember that the Bitcoin price has risen by 170% since the beginning of 2020. This is remarkable at a time when the world has been hit hard by a pandemic on a scale that has not been seen for years.
Bitcoin is more than ever a safe haven in times of crisis. The best store of value available to the greatest number of people to hedge against the great monetary inflation that we are currently experiencing.
The most incredible thing is that this is only the beginning for Bitcoin. If you have chosen to be a Bitcoin HODLER, your best days are ahead of you.
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