Bitcoin overtakes Warren Buffett firm Berkshire Hathaway by market capitalization

Bitcoin is getting closer and closer to the $ 30,000 mark and interest in it is growing.

Bitcoin ( BTC ) has recorded the highest transaction volume since the beginning of 2018. Data suggests that more and more investors are entering the market.

Figures from the on-chain analysis resource Digital Assets Data show that the second largest Bitcoin transaction volume was reached in December 2020.

BTC transaction volume hits record

The volume stands at $ 252.37 billion and in the final hours of December that number could rise even further.

Bitcoin transaction volume 1-month chart. Source: Digital Assets Data
Other indicators, such as the number of unprocessed transactions in the Bitcoin mempool and network transaction fees , also point to increased activity overall.

As Cointelegraph reported , there are more and more wallets with large and small stocks.

Meanwhile, Google Trends has recorded the highest number of searches worldwide for the term „Bitcoin“ since February 2018.

According to mainstream sources and seasoned crypto traders, the reason for this is because of the bull market that has continued this week . As of press time, Bitcoin Era scam was up to $ 29,300.

At $ 539 billion , the largest cryptocurrency surpassed the market cap of financial giant Berkshire Hathaway yesterday. Its CEO Warren Buffett once described Bitcoin as a „rat poison squared“.

Ether: Still very strong development

Despite its 290 percent growth since the beginning of the year, Bitcoin is dwarfed in comparison to the development of the largest altcoin, Ether ( ETH ). As confirmed by Digital Assets Data, the ETH / USD pair has gained nearly 500 percent since January 1st. Compared to the lows in March, the trend is even stronger.

In a series of tweets on Wednesday, Bobby Ong, creator of the price data website Coingecko, made his predictions for the crypto market in 2021. Among the large tokens, Ether is expected to record higher transaction fees again, but surpass its existing all-time high from 2018.

„ETH will break the all-time high of $ 1,500, mainly driven by the DeFi space. Gas charges will skyrocket again, showing problems with scalability,“ he wrote .

„We will spend most of the year coordinating a second tier scalability solution. I believe ZK Rollup will gain traction towards the end of the year.“

For Bitcoin, Ong predicts a price trend in the direction of 100,000 US dollars. In addition, there should also be the introduction of an exchange-traded fund and the first central bank should include Bitcoin in its holdings.

Bitcoin will suck up gold capital – JP Morgan sees great potential in BTC

Bitcoin and gold: the two assets are compared over and over again. Gold is older, Bitcoin is better. In the picture there are gold bars and BTC coins.

The growing mainstream adoption of Bitcoin (BTC) as a reserve asset is having a direct impact on gold, setting the stage for a major shift in the institutional allocation between the two assets, according to analysts at JPMorgan Chase.

Bitcoin is driving gold out of the market

Quantitative strategists, including Nikolaos Panigirtzoglou, believe that Bitcoin’s digital gold narrative will pull investors away from precious metals, possibly for the next several years, resulting in a large divergence in price between the two assets.

The bank said Bitcoin accounts for just 0.18% of the assets held by family offices, compared to 3.3% for exchange-traded gold funds. Using this data as a starting point, just a small shift from gold to BTC could create “structural headwinds” for the gold price.

In a note to customers that Bloomberg received, the strategists said:

The acceptance of Bitcoin by institutional investors has only just begun, while the acceptance of gold by institutional investors is very advanced. Should this thesis prove to be true in the medium to longer term, the gold price would suffer from structural headwinds in the coming years.

Choose the best and safest exchange for you

Choosing the right provider is not always easy. Therefore, we recommend you to take a look at our Bitcoin Broker & Exchange Comparison. Trade on the safest and best exchanges in the world!For comparison

Capital is already flowing out of gold and increasing at BTC

If you look beyond JPMorgan’s analysis, there is clear evidence that institutional adoption of Bitcoin is increasing. Grayscale has seen record inflows into its Bitcoin and Ethereum (ETH) trusts. Grayscale, Paypal and Cash App are buying up more BTC than are being “mined” every day.

CoinShares, a European digital asset manager, has also reported on the recent surge in capital inflows into Bitcoin and Co. In just four weeks, Bitcoin financial products sucked in $ 1.4 billion. Gold meanwhile saw record outflows of $ 9.2 billion.

Investors keen to join the trend can buy one unit of the Bitcoin Trust from Grayscale and sell three units of the SPDR Gold Shares Trust, the bank said.

Despite Bitcoin’s long-term value proposition, the digital asset is likely overvalued following the recent rally. The strategists point to the possibility of strong selling pressure in the short term. In the long term, enormous potential is seen.