Coming every Saturday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more — a week on Cointelegraph in one link.
Top Stories This Week
It’s happened! This week, Bitcoin officially reached an all-time high above $19,892 for the first time in almost three years after enjoying a rebound over the Thanksgiving weekend.
Unfortunately, Tuesday’s new record didn’t bring the fireworks many hoped for. All-time highs were only reached on a couple of exchanges. Soon afterwards, BTC suffered a violent rejection near $20,000 — falling to $19,000 in under 10 minutes.
After the flash crash, pseudonymous trader CryptoBull tweeted: “Worth noting that a $1,000 swing is just 5% now. Adjust accordingly.”
Later that day, Reuters took the crypto world by surprise after an unusually positive story: “Dollar plummets on U.S. stimulus hopes; bitcoin hits all-time peak.” The world’s oldest mining pool later immortalized that headline in a block.
As the week progressed, BTC struggled to return to the high $19,000s, and on Friday, it suffered yet another rejection at $19,500, making traders nervous.
While some believe BTC is undergoing a consolidation phase and could suffer another minor connection in the near term, others expect the crucial $18,500 level to hold — setting BTC up for a retest of the key $20,000 level and a new all-time high in the near future.
Bitcoin’s volatility doesn’t appear to have scared off institutions. On Thursday, demand from investors meant Grayscale’s Bitcoin Trust was trading at a chunky premium, making it 35% more expensive than buying BTC at the current market price.
Large-scale buyers are still creating more demand than supply can meet, and a huge sell…