The widely held view is that the impressive rise in the bitcoin price in December was primarily due to interest from institutional investors. But Tether and Bitfinex CTO Paolo Ardoino believes that retail investors contributed just as much.
„While growing institutional involvement has been the cause of the current price rise, we have seen an increase in retail interest in bitcoin as a form of digital gold,“ he said in a commentary to Bloomberg.
Earlier, discussing the first cryptocurrency’s rally over the Christmas holidays, Blockstream CEO Adam Beck expressed a similar point of view.
„Local highs of $24,700, $24,800 and $25,000 [on the holiday] on 25 December. Do you think these are institutional investors? On Christmas Day? Retailers are the people sitting at the keyboard,“ Beck wrote.
On December 30, bitcoin hit an all-time high at levels above $28,500.
As Bloomberg noted, the rise of more than 40% in December was the highest for bitcoin since May 2019.
Citibank analysts previously suggested that bitcoin will firmly establish itself as the digital gold of the 21st century by the end of 2021. This will potentially allow the first cryptocurrency to reach the $318,315 mark.
Many other experts share the same opinion. According to Michael Sonnenschein, director of Grayscale Investments, new investors see bitcoin „as a savings vehicle, an insurance policy against inflation, digital gold and a new form of money.
Renowned financier Dennis Gartman called bitcoin „millennial gold“ and did not rule out the first cryptocurrency continuing to grow for decades.
Billionaire Stanley Druckenmiller, a former partner of George Soros, also suggested that bitcoin may prove to be a better tool for preserving value than gold.
Recall that earlier, trader and analyst Ton Weiss called the prediction of bitcoin rising to $100,000 in the near future „overly conservative“. He said the first cryptocurrency is poised for another jump, which could push the price to $300,000 in 2021.
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