For crypto skeptics who have been following the Bitcoin trend for a long while, the time has come to rethink one’s position.
The leading cryptocurrency has continued to appreciate in value this year. Several crypto analysts had much to say about Bitcoin at the beginning of the year. Predictions were made of how Bitcoin would trade above $20,000 by the end of 2020.
The digital asset continues to set new records and responding positively to global happenings. Particularly the US Presidential elections have proven to be a good test of resilience.
One feat Bitcoin managed to achieve last Wednesday was staying above $10,000 for 100 days. Owing to high volatility in the past, BTC has not stayed above $10,000 for such an extensive period before. The longest stretch over 60 days in 2017. It went on to hit an all-time high amount of $20,000 later that year.
BTC 2020 Highs and Lows
The leading cryptocurrency has experienced a lot of bullish momentum this year. Staying above 10,000 for 100 days is a psychological milestone first and foremost. At the same time, BTC has also plunged below $4,000 this year, and reversed course afterward.
Bitcoin hit its lowest price in 2020 as a response to the coronavirus pandemic, which is not entirely abnormal. Plunging from over $8,000 to below $4,000 after the World Health Organization declared coronavirus a global pandemic is a logical consequence. All markets suffered during this period, and cryptocurrencies were no exception.
In the following months, Bitcoin began surging as high as $15,950. At press time, Bitcoin trades for $15,169.
Recent reports indicate that Bitcoin has now outperformed Goldman Sachs and JP Morgan Chase stocks in 2020. Not entirely surprising, as the leading cryptocurrency often performs much better than traditional investment vehicles.
Since the market crash in March, JPMorgan Chase and Goldman Sachs have recorded a near 31 percent and 50 percent rally respectively. In that same period, Bitcoin has climbed by nearly 250 percent. Another example of how different these markets can behave in the same time span.
What’s better for market investors (newcomers and veterans) is that this trend is possibly just the beginning of an enormous price rally. It can be the kind of price rally that is typical for Bitcoin, where it finds new support levels every few years.
Is now a Good Time to Invest in Bitcoin?
Amid all the surge Bitcoin experience, the asset is seemingly not reversing course anytime soon.
Despite all of this volatility surrounding Bitcoin, it performs extraordinarily from a performance perspective. At the start of the year, the cryptocurrency was priced at roughly $7,200. It could be on the verge of a bull run into a new ATH, spurred by news of PayPal’s entry. This is not investment advice on behalf of BlocDesk or its staff.
Other than PayPal, other firms like MicroStrategy and Square – among others – have staked on Bitcoin as a hedge investment. It is unclear if these companies play a role in the current Bitcoin price surge. It is possible more firms will allocate a part of their portfolio to Bitcoin in the future. Assuming that will be case, there will be an impact on Bitcoin’s value sooner or later.
Somewhat surprisingly, the ongoing US election has not had any real effect on Bitcoin’s price. BlockDesk reported how analysts expected a Biden presidency would be good for BTC. As things stand. Biden is the President-elect. What impact this will have on Bitcoin, or cryptocurrency in general, is impossible to predict.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at email@example.com