Bitcoin has just closed one of the most important years in its history, only the 2017 cryptocurrency-powered retail rally.
The value of bitcoin has increased by more than 300% in the last 12 months, surpassing its 2017 highs in renewed institutional interest and the prospect of wider adoption by the general public.
Now, as the value of bitcoin falls below the $30,000 mental point consistent with bitcoin, investors and cryptocurrency investors are looking for clues that can reveal how bitcoin will behave until 2021.
“It’s still pretty positive in the medium term given that [bitcoin] has just reached new historical highs,” Mark Newton, founder and president of Newton Advisors, told CNBC Trading Nation this week, indicating charts showing the bullish run will be paused in early 2021. “I think we have a long way to go. In the short term, my compound cycle shows a peak in early January. “
The value of bitcoin has reached a contact distance of $30,000 this week, achieving $29,700 consistent with bitcoin on the Luxembourg-based Bitstamp exchange before falling slightly. Bitcoin has quadrupled since the beginning of 2020 and reached its highest monthly profit since May 2019 December.
In December, a leaked Citi report revealed that the idea of one of the bank’s senior analysts that Bitcoin could succeed at $318,000 through December 2021, called it “21st century gold. “
Bitcoin has built its reputation as “digital gold” 2020, locating the help of investors who distrust the government’s large cash impression will devalue classic currencies and cause a wave of inflation.
“Gold hit a new all-time high in 2020 and bitcoin set a series of new highs, more than tripling at the time to pass the $ 28,000 mark for the first time,” said Russ Mold, lead investment officer at brokerage AJ Bell. . via email.
“Some will say there will be more to come for gold and bitcoin, especially if governments continue to collect debt and central banks do their best to finance those loans through the back door with quantitative easing, interest rates 0 and manipulation of bond yields, thanks to their shortage of cash price,” Mold said , referring to Bitcoin’s constant supply of 21 million chips and the expansion of the 2% year-consistent gold source.
Bitcoin’s growing popularity, meanwhile, creates an additional polarity between those who see Bitcoin as a sensible investment and those who distrust its value.
“Others will say that neither gold nor bitcoin has an intrinsic price because they generate cash,” Mold said.
Some might even say that bitcoin is just a glorified Ponzi scheme, as the new budget is coming from below to help the smart cash that was temporarily rescued at the top. In 2021, investors will have the opportunity to pay their cash and make their selection as to whether they see bitcoin and gold as valuable reserves and useful portfolio diversifies, as governments and central banks invoke cash from scratch, or more unrest than they are value or not. “
Meanwhile, the cryptocurrency network is divided into the long term of many smaller cryptocurrencies. The imminent risk of regulation and increased government oversight have caused dismay that less decentralized cryptocurrencies are simply affected.
“The dominance of Bitcoin is inevitable after a tumultuous year in which the king of cryptography went from less than $4,000 in March to a new record of more than $28,000,” said Paolo Ardoino, leader generation officer at Hong Kong-based Virgin. Bitfinex, cryptocurrency exchange. registered on the islands, he said in email comments.
Bitcoin’s dominance, a measure of Bitcoin’s value relative to the broader cryptocurrency market, has increased in recent weeks, but remains more or less strong over the more than 12 months.
“While a developing institutional presence has been a component of the existing bullish career narrative, we can see increased interest from bitcoin retailers as a form of virtual gold,” Ardoino added. “It can also generate interest in many cutting-edge projects that are positioning themselves in the virtual token space. “
I am a journalist with significant experience in the fields of technology, finance, economics and business around the world. As founding editor of Verdict. co. uk, I pointed out that