Bitcoin has had a good run in 2020. The price of Bitcoin finally surpassed $20,000. At the time of writing, it is trading at $26,994.70 However, whenever it previously spiked over $19k, it rapidly switched to a bear market.
Many people now have become excited about its latest bullish development. Is Bitcoin’s price going to keep surging up, or will it crash down, and what does it mean for the market?
Many experts believe Bitcoin’s value will ultimately reach a new all-time high, possibly 10x or 20x of where it is now. Yes, Bitcoin’s price could climb to $200,000 or even $400,000 over the next few years. And according to a former Goldman Sachs hedge-fund chief, Bitcoin will surge to $1 million in 5 years.
It sounds crazy, but if recent trends in the world of crypto continue to develop, it is possible. The following are some of these major market dynamics affecting the price of Bitcoin that are worth exploring.
Huge Institutional Investment Flowing into Bitcoin
In 2017, there was a lot of attention on Bitcoin and crypto, but nowhere near what is being witnessed now. There has also been substantial institutional investment flowing in this time around. Bitcoin is getting massive buy-in from large institutions and hedge funds. It is no longer just your average retail investor trading Bitcoin to make some quick profits. One of the biggest stories in the crypto world right now is an investment by a firm known as MicroStrategy.
So far this year, MicroStrategy has spent around $475 million on Bitcoin. MicroStrategy made an initial purchase of 21,454 BTC at $250 million in August. The following month, the company purchased 16,796 BTC at $175 million, and on December 5, MicroStrategy founder Michael Saylor tweeted that the company had bought an additional 2,574 BTC for $50 million. It is not just MicroStrategy; there are dozens of other publicly traded companies buying into Bitcoin.
Companies such as Grayscale, Square Inc., etc., are all making significant moves into Bitcoin. Institutional investment in Bitcoin is at an all-time high. The big institutional money flowing into Bitcoin is not only likely to stabilize the price to all-time new highs, but it is also going to help curb downward trends so that it will be less inclined to experience a rock-bottom crash. These massive investments will help keep the price of Bitcoin stable and keep investors at a nice level as they await the next bull run.
The First Bitcoin Rewards Credit Card
Bitcoin is also making inroads in the credit card space. Earlier this month, crypto-based lender BlockFi announced that it would be launching a Bitcoin rewards credit card next year. The BlockFi Bitcoin Rewards Credit Card will be the first of its kind in a world dominated by cashbacks, miles, and points. There are plenty of crypto debit cards offering rewards, but no cryptocurrency credit cards have offered rewards until now.
The Explosion of New Bitcoin ATMs
Bitcoin ATMs are cash machines that allow users to conduct transactions in Bitcoin. The rate of Bitcoin ATM installations has more than doubled in 2020. You can buy and sell Bitcoin via a Bitcoin ATM using your credit card, debit card, or even cash. As of November 1, there were 11,497 Bitcoin ATMs globally. That’s a massive jump from around 5000 in June 2019. Bitcoin ATMs make it easier for people to buy and trade BTC. The explosion in new Bitcoin ATMs is one of the reasons the price of Bitcoin has been stabilizing.
What’s Next For BTC?
Bitcoin had previously been on a downward trend since 2017 when the price of the world’s first cryptocurrency hit an all-time high. Lately, there seems to be hope that BTC may have gained some traction and the crypto winter is over (for now, at least). Bitcoin predictions for the short term see big gains ahead, and there are plenty of good reasons to assume that they are correct. Bitcoin’s price is on the run for the next all-time high, with some analysts predicting that BTC will hit $1 million by 2025.
With the media attention that Bitcoin is getting right now and the amount of institutional money flowing in, these predictions seem quite reasonable at this point. However, some analysts in the crypto market believe that the BTC bull run is something of a crypto trap and they advise caution when it comes to investing in Bitcoin at this time. You might end up riding the parabolic wave into highs and back down, ultimately losing money or making very little profit in the process.
That is why buying digital coins in an asset-backed cryptocurrency, like gold-backed META 1 Coin, is a wiser choice. The asset backing provides greater stability to the coin’s value as compared to coins without any backing. Plus, META 1 excludes institutions and non-human entities from buying the coin which reduces the potential for high volume trading that often leads to crashes. META 1 Coin was designed for Humanity, and so only humans can buy it. Learn more at: meta1.io.