Renewed Interest in Crypto Sparks All Time High Bitcoin Value as the Year Draws to an End – Blockchain News, Opinion, TV and Jobs

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The worst year of all years in all other respects is now ending well for the wallets of Bitcoin owners. Eighteen days before the third anniversary of its previous high of $ 19,783, Bitcoin hit $ 19,857.03 after starting the year slightly more positive than last year at around $ 7100.

After a sudden renewed interest in crypto, financial experts had made interesting predictions as of late spring. As the year went on, it became increasingly clear that the digital currency would power the new world economy in 2020.

November started with Bitcoin hitting $ 14,000 in value, which was already amazing but ended on an even bigger bang. However, as expected, the peak on Monday was followed by a devaluation. This time around, however, people don’t expect a crash like they did after the 2017 peak. In fact, both avid and cautious investors are predicting significant gains for Bitcoin over the next two years.

Estimates vary widely when it comes to the price of Bitcoin. Some say it could hit $ 60,000 by next year; others believe it could even cross the $ 100,000 mark.

When Bitcoin rocked the market in 2017, hitting an unforeseen high of $ 19,783, professionals and amateurs alike took cryptocurrencies seriously, but that dream didn’t last long. Bitcoin was still unstable and the currency only crashed spectacularly shortly afterwards. It lost 25% of its value in just one day and was valued below $ 4,000 in late 2018. Financial skepticism dominated predictions about his future.

But Bitcoin was only worth hundreds in 2016 and cents in 2008. Despite its colossal decline, it had stabilized at a price that would still bring incredible profits to early adopters.

If people believe that Bitcoin will find stability in the higher segments, then where does the confidence come from?
The reason for investors’ newfound trust in crypto has to do with who is investing in crypto. In 2017, Bitcoin’s price was spiked by individual investors who believed in the future and value of the technology. It was a gamble, not a serious investment. It was not backed by any assets or government, and the lack of general support added to its risk.

In 2020, the rise of Bitcoin will be driven by institutional investment. Large hedge funds and publicly traded companies are driving this bull cycle and do not suffer the same reputational disadvantage as private investors.

Recently, Square and even Paypal added cryptocurrency to their offering. The mainstream financial media are now paying attention to it and reporting regularly on crypto. Crypto has become serious business.

When big players like this one turn their eyes and money on the crypto world, it gives it the legitimacy it needs. We could see the beginning of the digital currency’s entry into the mainstream and in the years to come this market will harden into its proper shape.

Covid has also had a lot of impact on what we’ve seen over the past year. Institutional investors are starting to pay attention to Bitcoin as countries have had to increase their debt to bear the financial strain on closed economies and decreased production.

Another important factor that is likely to drive the price of Bitcoin higher is the supply problem.

There is only a limited amount of bitcoin available. While Bitcoin can be mined, there are very few who actually do so and all other investors are dependent on its supply. Additionally, Bitcoin miners are being asked to keep their assets when prices go up.

Swissquote Bank’s Chris Thomas said, “The imbalance between supply and demand is just amazing.” Institutional buyers are taking in large volumes fairly quickly and demand does not seem to be drying up.

Glassnode reports that miner wallets like Lubian.com, F2Pool, Binance Pool and Poolin together contain more than 33,000 BTC. Thomas added: “Miners have to cover their operating costs [..] It is clear that we will continue to move up in fairly convincing ways for some time to come. “

As this trend continues, BTC prices will continue to rise, but the supply problem will have another notable consequence that Finnixio advises inventors to watch out for.

Bitcoin isn’t the only cryptocurrency in town, and its supply problems are likely to boost other competing currencies as well.

In the past few days, ETH / BTC has also been in a bull cycle. Ethereum has grown 350% in value since the beginning of the year, and investors seem ready to buy Ethereum with Bitcoin.

Last week, Ether briefly passed the $ 600 mark, Mr. Grunwerg tells us. The developers have also announced exciting updates aimed at addressing issues with the scalability of Aether, making the currency even more competitive.