Bitcoin has just shut down one of the biggest years in history, second only to the crypto-mania retail rally of 2017.
The price of bitcoin has added more than 300% in the past 12 months, surpassing its 2017 highs amid renewed institutional interest and the prospect of wider mainstream adoption.
Now, as the price of bitcoin moves below the psychological level of $ 30,000 per bitcoin, cryptocurrency traders and investors are looking for ads that could reveal how bitcoin will thrive through 2021.
The price of bitcoin has gone up through 2020, with many in the bitcoin and cryptocurrency community … [+]
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“It’s still very bullish on a medium-term basis because of that [bitcoin] just broke out into new full-time heights, “Mark Newton, founder and president of Newton Advisors, told CNBC’s Trading Nation this week, citing records that show the running of the bulls to be put on hold in early 2021. ” I think we have a way to go. Near term, my cycling work shows us to arrive in early January. “
The price of bitcoin has come within an attractive pace of $ 30,000 this week, hitting $ 29,700 per bitcoin on the Luxembourg-based Bitstamp exchange before falling back slightly. Bitcoin has quadrupled since the beginning of 2020 and completed its biggest monthly gain since May 2019 in December.
Bitcoin’s latest bull run was launched in October by the PayPal news payments giant
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In December, a Citi report released revealed that one of the bank ‘s leading analysts believes that bitcoin could hit a high of $ 318,000 by December 2021, saying that it is “21st century gold ‘ann. “
Bitcoin has built its reputation as a “digital gold” throughout 2020, by seeking support from investors who keep a close eye on the printing of government money, depreciate traditional currencies and encourage a wave of inflation.
“Gold reached a new full-time level in 2020 and bitcoin has set a series of new peaks, more than tripling in the second half of the year to surpass the $ 28,000 mark for the first time,” Russ said. Mold, investment director at AJ Bell bankruptcy, said via email.
“Some argue that there is more to come from both gold and bitcoin, especially if governments continue to accumulate debt and central banks do their best to finance that loan through the back with a quantitative, discount. zero interest and bond yield handling, thanks to their scarce value compared to cash, ”Mold said, citing bitcoin’s fixed supply of 21 million tokens and 2% annual supply growth at gold.
The 2020 bitcoin price bull run has already surpassed the 2017 rally. But will this yield a similar result … [+]
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At the same time, the Bitcoin market is expected to create more polarity between those who see bitcoin as a strong investment and those who are skeptical about its value.
“Others argue that gold or bitcoin has no intrinsic value, as they do not generate money,” Mold said.
“Some even argue that bitcoin is just like a glorious Ponzi scheme, as new money flows in at the bottom to help with the smart money that went into an early trust at the top. in 2021 investors will have the opportunity to pay their money and take the option of whether they see bitcoin and gold as sources of value, and useful portfolio multipliers, as governments and central banks are collecting money out of thin air, or more trouble than anything that may or may not be worth it. “
At the same time, the cryptocurrency community is divided over the future of many cryptocurrencies. The risk posed by regulation and increased government control has caused controversy that less fragmented cryptocurrencies could be hit.
“Bitcoin’s leadership is inevitable after a turbulent year in which the king of crypto has risen in price from less than $ 4,000 in March to a new high above $ 28,000,” said Paolo Ardoino, chief technology officer at Hong Kong and Virgin Britain said cryptocurrency exchange registered in the Bitfinex islands, in e-mail comments.
Bitcoin’s dominance, a measure of bitcoin’s value relative to the broader cryptocurrency market, has gone up in the last few weeks but remains broadly flat over the past 12 months.
“While a growing institutional presence has been part of the current bull run statement, we may see increased retail interest in bitcoin as a form of digital gold,” said Ardoino. “This could also stimulate interest in the many innovative projects that are emerging within the digital token space.”