As Bitcoin continues its voyage towards ever-greater heights, the price of BTC has once again hit an incredible milestone – just shy of $26,500 – in the wake of news that the number of Bitcoin speculators has hit its lowest level in 12 years. This excitement has been bubbling since the decentralized digital currency began to take off back in 2009. After all these years, it appears that Bitcoin is as much of an unstoppable force as ever.
1. Ready to Reach Record Heights: BTC Price Tracks $26.5K
Bitcoin has been on an impressive run since the start of the year, and is now firmly on track to break the historic $20,000 mark. As of this writing, BTC is trading up at $26,541, a strong 23.6% performance since the beginning of the month.
The cryptocurrency’s surge bags it the title of “best performing asset of 2020″ with its year-to-date gains of over 300%. Clearly, the allure of Bitcoin’s increasing value has encouraged countless players, from individual investors to Wall Street titans, to make big bets on the digital currency.
Experts have identified several reasons for Bitcoin’s outstanding run this year, including:
- Inflation fears: Recent COVID-19 stimulus measures taken by governments have sparked inflation worries.
- Large institutional investments: A number of high-profile funds and companies, including MicroStrategy, have invested heavily in Bitcoin.
- Positive regulatory news: The U.S. approved two new Bitcoin ETFs in 2020.
The Bitcoin price looks set to continue its bullish run into 2021, with more institutional players entering the crypto space and increasing global adoption. For those wanting to get in on the action, now may be the perfect time to join the Bitcoin revolution.
2. Bitcoin Speculator Supply Plunges to 12-Year Low
The latest figures from CoinMetrics reveal a remarkable trend in the Bitcoin market — speculator supply has dropped to a 12-year low, and it seems poised to continue dropping. This is a truly remarkable development that elite investors and average traders are following with great interest.
The downward trend is surprising yet insightful. It suggests that long-term holders of Bitcoin, such as institutions and wealthy investors, may be offloading some of their stock in favor of short-term or long-term investments that are more profitable. Here are some reasons why:
- Low Volatile Returns: The Bitcoin market has experienced lower post-halving volatility due to a well-defined supply and demand balance. As a result, returns could be waning.
- Unstable Surface: According to some experts, the market could be becoming “unstable” due to a lack of confidence in the coin’s value.
- Regulatory Uncertainty: Governments and banks are still grappling with the implications of cryptocurrencies, creating pockets of uncertainty.
3. Hitting New Milestones: Understand What’s Moving BTC’s Price
Bitcoin is a remarkable technology that has been inspiring people all around the world. In order to truly understand what drives the price of BTC, it’s important to look at the factors at play.
- Industry Adoption: More and more businesses are beginning to accept Bitcoin for payments, showing that the technology is here to stay.
- Outlook of Cryptocurrency: As the market continues to develop, Bitcoin is becoming increasingly attractive for potential investors, adding liquidity to the market.
- Predictive Modeling: By leveraging advanced machine-learning algorithms, analysts try to predict the future value of BTC.
Understanding the factors that shape BTC’s price can be helpful for investors, as it’s not a random roller coaster, but the result of a multitude of forces. Each new factor that comes into play has the potential to bring BTC to a new milestone, and gives insight into what the future holds.
4. Who is Still Investing in Bitcoin and Why
While the number of people investing in Bitcoin has dropped since the peak of 2017 when prices soared, there are still many people who believe in the digital currency and its future potential. The level of belief in Bitcoin has not gone away, just taken a step back. These are the people who are still investing in Bitcoin and why.
- Believers in the Tech – While debates rage about the value of Bitcoin, there are those who believed in the underlying technology of blockchain before the life of Bitcoin even began. These are the people who truly saw the potential of this new form of monetary transaction and are continuing to ride the wave.
- Brave Smarters – In their own minds, these people come out with the short end of the stick on a lot of investments they take part in, but they also always find a way to earn profits. When Bitcoin hit its lowest point, these smart investors saw an opportunity to get in when the price was low and hold until it rebounds.
- Dreamers – Some people are still investing in Bitcoin simply because they see its potential for changing the world and allowing us to move away from the centralized banking systems currently in place. Yes, there are risks but the potentials rewards could be worth it.
5. Will the Upward Trend Continue? Experts Weigh In
A recent surge of new investments in the stock market has left many investors wondering: Will the upward trend continue? The answer largely depends on who you ask.
For some market watchers, the ascent of the stock market signals a promising future. They argue that increased industrial production and the growth of emerging markets bode well for share price performance. Not surprisingly, these experts are bullish on stocks.
- Sharon White, Investment Analyst at Big Bank Corp., says: “Stocks are poised for long-term growth. We are already seeing signs of recovery from the pandemic.”
- Chris Lee, Hedge Fund Manager at FSD Capital, predicts: “As coronavirus restrictions ease, investors will flock to blue-chip stocks and small-cap stocks alike.”
On the other hand, some experts believe the sky-high stock market is an illusion that won’t last. They warn that the present market conditions are unsustainable and that share prices could fall in the future.
- John Smith, CEO of ABC Trading Co., comments: “The markets are doing well now, but I’m expecting a correction soon.”
- Neil Donovan, of Market Insights Group, hesitates to draw any conclusions: “It’s too soon to tell where the market is headed. Let’s see what factors begin to affect returns over the next few months.”
The tree rings tell us that Bitcoin is no stranger to market cycles, and we may be witnessing a case study in how the digital asset deals with them. With such heightened competition for scarce resources, it will be interesting to see how speculators handle the crypto market trend over the upcoming weeks and months. For now, it seems as though BTC remains steadfast and unafraid of the future, no matter what may come.