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Trends for bitcoin are getting stronger by the day. A price of $50,000 per Bitcoin no longer seems unbelievable. This year, the Bitcoin exchange rate could very likely go to $100k. Let’s try to understand why.
BTC/USD
The next bailout package is coming soon in the US. This infusion of funds will inevitably lead to inflation, so investors are now looking for replication-independent assets, which is Bitcoin. Considering another cryptocurrency boom, it is likely that some of the bailout money will go into this market. Bitcoin is now on everyone’s lips and it is easy enough to buy it. More and more services are making it possible.
Just a few years ago, big investors like Warren Buffett thought Bitcoin was a fraud and a toxic asset. Now, when the price reached $50,000 per BTC, there are no more such statements from skeptics. More and more big companies are starting to invest in Bitcoin. When big money enters the game, the trend unwinds so that the highs are impossible to guess. Aggressively growing markets can reach obscene levels.
The value of Bitcoin has risen six-fold in a year, but even at that value, investors continue to put coins into cold wallets. In the last 12 months, the number of coins on exchanges has fallen by 20%. And as we all know, if supply falls, the price will rise.
As Bitcoin’s acceptance grows, more and more new companies are coming to the markets. Some giants, like JPMorgan, are even having to give up their own stance on Bitcoin in order to maintain profits. Goldman Sachs is resuming Bitcoin on its trading platform, although it had no intention of doing so recently.
So far, the bullish trend in Bitcoin has been very difficult to stop. The injection of massive amounts of liquidity will only push up the demand for decentralised assets. All of these actions together could give such a strong boost to growth that it will be impossible to predict the next high. But the important thing to keep in mind is that as the price of an asset rises explosively, so does the risk of loss.
What’s in store for us today?
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