Contrary to the assumptions of a prolonged BTC correction, the first cryptocurrency continued to rise.
The price of BTC became over $16K for the first time since January 2018, then BTC was declining after an all-time high of $20K. Perhaps, soon we will see a return of this record or a new all-time high in BTC.
Bitcoin has been steadily rallying with little corrections since early September. Back then, the king of cryptocurrencies was worth $9.8K. Anyone who then opened long positions in bitcoin, today made a profit of almost 65%, in just two months. Bitcoin also increased its share of the crypto market, with Bitcoin Dominance rising to 64.2%. The capitalization of the first cryptocurrency approached 300 billion. Since the beginning of the year, bitcoin has grown by 124%, but this is taking into account the panic over the first wave of coronavirus in March. Then Bitcoin dropped to $3.7K. If to count from this level, BTC showed an increase of almost 340% in 8 months.
Bitcoin’s dynamics is affected by two fundamental factors: quantitative easing programs in connection with the coronavirus crisis and investments by large institutional investors. When a large amount of unsecured money appeared in the markets, investors had to seek salvation in a more reliable asset than fiat currencies. And the fact that large funds invest in cryptocurrencies increases the attractiveness of this kind of asset in front of investors and traders. Bitcoin has proven to be more attractive than gold because it is easier to handle. The appearance of new money on the crypto market pushes up the first cryptocurrency as the most tested and reliable asset. Even conservative Bloomberg is forced to admit that the crypto market will continue to grow.
According to analyst Mike McGlone, BTC will set a new all-time high in 2021. However, it is now clear that this forecast is too cautious, and bitcoin may break up the $20K level later this year. McGlone previously announced that BTC could be worth $100K by 2025 and noted that bitcoin will grow together with gold. The price of metallic gold will exceed $2K per ounce, according to the expert.
However, there is also the opposite opinion. According to Ray Dalio, the founder of the investment company Bridgewater Associates, government bans could work against bitcoin. Ray Dalio is one of the most successful investors, and Bridgewater Associates is considered one of the most profitable institutions in its field. Dalio argues that gold is preferred over cryptocurrencies for investment protection. It is a metallic gold that governments and central banks choose as an alternative to fiat money. Therefore, it is possible that the authorities will ban BTC if it turns out to be too successful.