Bitcoin Crosses $20,000 For the First Time

In what is yet another milestone for the cryptocurrency, the bitcoin crosses the $20,000 mark for a brief period of time on Sunday, December 17. This is the highest total that the currency has ever reached.

The currency reached the $20,000 mark during the middle of the trading day. The currency was listed at $19,300 as the day started and eventually moved up to $20,000 through basic trading.

However, the currency was only at this milestone for about half an hour. The value then started to fall back down and eventually went to $18,300 on the morning of December 18. The currency rebounded to get back to the $19,000 mark during the midday point.

This continues as the bitcoin has experienced a 24-hour trading volume of around $13 billion for the most part. That total reached $15 billion at the time the bitcoin reached its peak, thus suggesting there was a stronger demand for trades at that time.

This development comes amid a month where the value of the bitcoin had been growing exponentially. As more exchanges have begun to offer bitcoin trading, it has been easier for people to use the bitcoin and to buy and sell the currency. The currency had barely been at a little above $10,000 when the month of December started.

Fewer Bitcoins Available

The development also comes as the supply of available bitcoins has begun to decline. There are 16.75 million bitcoins that have been mined out of the 21 million that can be produced in its history. The rate of coin mining and the introduction of new coins has been rather consistent in the past year as the rate of creation has not changed all that much. Still, the value could change as the demand for the bitcoin increases now its value is rising and fewer currencies are available.

Derivatives Are Important

Bitcoin derivatives have become available in recent time with many exchanges trading the currency. These include some of the major commodity exchanges in Chicago. This allows the currency to be easier for people to trade as they do not have to go to an online exchange to trade it. This is believed to be making the currency all the more valuable and viable, thus allowing people to trade the currency.

Chart Analysis

Although the bitcoin has grown in value, the volumes involved with rallies surrounding the currency have declined in recent time. The volumes are also below the 30-day moving average. This suggests that the currency might remain at a consistent value and not experience far too many increases. Any dramatic increases would result in equally significant losses although the bitcoin would still be in the same value range it is currently in.

Even with this, the bitcoin has been able to defy various resistance levels as new developments relating to the currency come about. There is a real chance that the bitcoin might grow in value and that it could shift over time as new developments occur. This in turn has caused the bitcoin to become one of the more complicated and interesting investments for people to explore when looking for something to get into.

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