Bitcoin cracks 25,000 US dollars and hangs up on big „competitor“
Bigger than Visa – Bitcoin cracks 25,000 US dollars and hangs up on big „competitor“.
Yesterday, 25 December, Bitcoin (BTC) climbed above the US$25,000 mark on crypto exchange Bitstamp, setting (yet another) new record high. At the same time, the market-leading cryptocurrency has thus reached a larger market capitalisation than payment giant Visa.
Leading payments group Visa has a market value of US$460.06 billion as of today, 26 December, according to Yahoo Finance, whereas Bitcoin now stands at more than US$462 billion.
Apples and oranges?
Bitcoin is a peer-to-peer (P2P) based blockchain protocol, while Visa is a for-profit commercial enterprise. This might lead the reader to conclude that a comparison between the two is not valid.
Nevertheless, the comparison of the two „payment systems“ has a symbolic value, as the current market Profit Secret capitalisation makes Bitcoin currently the thirteenth largest company in the world (see above).
Institutional investor interest in Bitcoin has received a significant boost in 2020. Demand from large investors is now growing exponentially, and with the cryptocurrency now outpacing another major ‚competitor‘ in the form of Visa, institutional investor confidence could be further boosted.
More and more institutions and large investors are entering the crypto market through the large asset management firm Grayscale and the bitcoin futures of CME Group’s options exchange. Grayscale’s assets under management are now already close to $17 billion, while the CME bitcoin futures‘ open interest is consistently above $1 billion.
Ironically, Visa itself has shown increasing interest in the crypto market in recent months, now that the two major payment service providers and competitors Paypal and Square are also betting on Bitcoin.
For example, Wirex, a company that issues Visa debit cards for cryptocurrencies, has been named a strategic partner of Visa Europe. Cuy Sheffield, Visa’s senior director of cryptocurrencies, says in this regard:
„Digital currencies have the potential to extend the value of digital payments to even more people and geographies. We’re excited to partner with innovative fintech companies like Wirex, which enables their customers to pay with digital currencies at more than 61 million retailers on the Visa network.“
What’s next for Bitcoin?
Meanwhile, crypto experts are confident that things will continue to go up for Bitcoin, at least in the short term.
For example, crypto analyst Intotheblock says that a key support area has emerged between US$23,069 – US$23,377, which can underpin the recent uptrend. To this effect, he writes:
„Bitcoin has managed to consolidate above US$23,000. The IOMAP indicator reinforces this thesis as it shows strong support between US$23,069 – US$23,377.1. In this range, close to 900,000 addresses had recently bought 796,000 BTC.“
As long as Bitcoin can hold above the important support ranges, experts believe that the uptrend will remain intact.
Cointelegraph expert Michael van de Poppe, who is a full-time trader on the Amsterdam Stock Exchange, believes that the crypto market may soon crack its record market capitalisation of $780 billion. He explains this as follows: