“Dollar Plummets On US Stimulus Hopes; Bitcoin Hits All-time Peak” Immortalized By Slush Pool
The world’s first Bitcoin mining pool, Slush Pool, has immortalized a significant Bitcoin moment by putting it in a block.
On Thursday, the mining pool that started in 2010 shared that it has included the Reuters’ headline from an article published on Dec. 1st, 2020, in block 659678. the headline in question is.
“Dollar plummets on U.S. stimulus hopes; bitcoin hits an all-time peak.”
This is what epitomizes 2020 for the Bitcoin market. A year in which the leading digital asset started strengthening its position as an inflation hedge in the macro backdrop of money printing.
This is the year when everyone wants in on Bitcoin and cryptocurrencies. Boosted by increased demand from both institutional and retail investors, the digital assets are being seen as a safe haven and a store of value.
During the same time, the USD index is falling to multi-year lows, and according to many high profile names like BlackRock CEO Larry Fink, a digital currency “makes the need for the U.S. dollar to be less relevant.” Analyst Mati Greenspan commented,
“(Fink's) not being quasi-bullish on bitcoin. He's actually suggesting that bitcoin, or something like it, can potentially eliminate the need for the U.S. dollar to act as the global reserve currency.”
A Shift in Players
Amidst the increasing adoption, a shift in the market has been seen. While the Bitcoin market has been typically dominated by East Asian investors from countries like China, South Korea, and Japan, it is becoming a playground for North American investors.
In 2020, the weekly net inflows of BTC to platforms serving the North American users have jumped more than 7,000 times to over 216,000 BTC in mid-Nov., as per researcher Chainalysis.
As we reported, the BTC price moves have been dominated by the US investors in the 4Q20 rally as institutions continue to pour in. Ciara Sun of Seychelles-based Huobi Global Markets said,
“The sudden influx of institutional interest from the North American region is driving a shift in bitcoin trading, which is rebalancing asset allocations across different exchanges and platforms.”
Among the biggest BTC hubs, East Asia, North America, and Western Europe, the first two account for about half of all transfers. Volumes at four North American exchanges have also doubled in 2020 to 1.6 million BTC per week at the end of November compared to trading at 14 major east Asian exchanges seeing only a 16% jump to 1.4 million.
However, it is still too early to call it a fundamental shift.