Bitcoin Reached Above $20.000! What To Expect With This Recent All-Time High?

 

The price of the most famous cryptocurrency in the world skyrocketed as it recently reached an all-time high of more than $20.000, a three-year high.

Since its launch in 2009, this cryptocurrency has always dealt with dynamic price changes.

Nevertheless, many investors have been eager to try investing in Bitcoin as the global stock market is being regarded as quite volatile due to the pandemic.

Many opinions on the matter are heavily relying on analyzing the current situation and assessing the need for a quick solution to the quick surge of rapid changes in the crypto world. 

In November, Bitcoin climbed to the highest level of recent times at a staggering $20.000. A number of analysts regarded the matter as an encouragement of investors to reassess their point of view on Bitcoin and other cryptocurrencies.

Then when talking about prices, some people believe that the “fear of missing out” (FOMO) is what’s behind the recent rise in Bitcoin.

Mr. Oliver added that “Its rebound is creating more interest from speculators and so they are jumping in which then pushes it even higher”.

For automated trading with bitcoin or crypto you can use Bitqh App

What happens during price changes?

Investors have a tendency to move their money out of shares and invest into more ‘safer havens’, like traditional money or gold, when prices are volatile.

Some people are really starting to view cryptocurrencies as sort of a safe shelter from the volatility of the stock market. Edward Moya of the trading firm Oanda, recently said, “Covid-19 has disrupted the traditional safe-haven trade and gold’s inability to outperform. Periods of extreme risk aversion have forced many traders to diversify into Bitcoin”.

Bitcoin’s limited supply, which tops at 21 million, is an attractive fact. 

How do crypto-currencies work?

Some analysts think that the scarcity provides a sort of value and it prevents Bitcoin inflation, which some think it is wise considering.

Nevertheless, the head of investment strategy and chief economist at AMP Capital, Shane Oliver, recently warned about the volatility of Bitcoin, as he said it is hard to predict how long it will retain its value due to the prices bouncing around all the time.

Becoming a mainstream solution

Recently, it was announced by PayPal that its customers would be able to sell, buy, Bitcoin and cryptocurrencies with their PayPal account, which in itself means that it will be allowing customers to purchase from the 26 million sellers, which accept PayPal.

When talking about next year, PayPal is planning to allow cryptocurrency to be used as a funding source.

President and Chief Executive Dan Schulman declared that PayPal is hoping that this service will prepare its network for the rise and development of new cryptocurrencies that may be produced by banks and financial institutions and they believe that this will also encourage the global use of cryptocurrencies.

“We are working with central banks and thinking of all forms of digital currencies and how PayPal can play a role,” he said.

Log in