Bitcoin just set a new all-time high just minute ago, exploding from $34,000 to $35,800. The cryptocurrency has since retraced slightly to $35,300 as the breakout has slowed to some extent. BTC’s rally appears to be a by-product of news that the democrats are expected to win the Georgia Senate elections, which will determine the state of Congress in the years ahead. This “blue wave” that is expected by the pundits will lead to further monetary and fiscal stimulus than if it was a Republican-led Senate.

The sudden fear of inflation caused by unprecedented money printing also acts as the reason for rise of Bitcoin. Each new round of stimulus money resulted in yet another massive rally in the cryptocurrency.

The increase in BTC’s price is also triggered by institutional investors who now account for a huge portion of Bitcoin’s hodlers over the past year. The most recent additions to this growing list include Skybridge Capital, with investments of $25 million in December 2020, and MassMutual, with investments of $100 million in Bitcoin, in the same month.

As expected, the institutions that took huge positions in the crypto-asset earlier in the year have already recorded significant returns on their investments. Most notably, Micro strategy recorded gains upwards of $1 billion on its Bitcoin investment.

As popular Bitcoin proponent Anthony Pompliano was quick to note, “There is just not enough Bitcoin available for all the institutions that want to own some now.” According to Pompliano, the price has to continue to move upwards in order to accommodate everyone who wants to own the crypto-asset.

BTC/USD 4 Hour Chart:

Support: 31023.1 (S1), 28285.6 (S2), 26681.7 (S3).

Resistance: 35364.5 (R1), 36968.4 (R2), 39705.9 (R3).

In the prevailing atmosphere where Bitcoin is forming a continuous rally, we expect a bullish trend for BTC/USD.