Bitcoin surpasses $55,000 mark as projection hangs on large holders

Bitcoin has taken its bullish run above the $55,000 mark in the last 24 hours.

Bitcoin, the most popular of the cryptocurrency, traded at $1 in 2009 and had reached $55,303.47 as at Friday.

In the last few hours, the lowest Bitcoin has traded was $50,821.47. But checks by Ripples Nigeria showed that it is currently trading above $55,300 on Coindesk.

Since Bitcoin hit $20,000 in December 2020, it has enjoyed promotion from the likes of Tesla founder, Elon Musk and one of its believers, Microstrategy.

But companies have invested heavily in Bitcoin and their presence had driven its growth in January and early this month.

Mastercard and Apple had also contributed to the big Corporation push. But in the last week, Bitcoin surge has been organic. It is projected to hit $60,000 in the first quarter and $100,000 before the end of 2021.

READ ALSO: IMF backs CBN ban on cryptocurrency in Nigeria

However, the volatility of the cryptocurrency market makes the projection dependent on the holding position of institutional investors and other large holders as they have pumped a significant amount into Bitcoin and could dump it in the course of the year to protect their profit.

Dumping of Bitcoin by large holders will send its value crashing down and affecting other small holdings who will lose significantly and end up as the last fool.

Central Banks across the world have moved against trading in cryptocurrency because of its high risk.

The regulators described cryptocurrency as an illegal currency and ruled out backing the digital assets for legitimate trade.

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