Just as when theories were floating around of Bitcoin reaching its peak, it has once again beaten estimates and reached an all-time of $29,700 thereby quadrupling its value for 2020. At a time when all other financial investments are offering meagre returns, bitcoins have beaten all estimates and continue its upward rally amid heightened interests from larger investors. Traders are now eyeing the $30,000 per bitcoin very soon.
Posing Challenges to Established Market Players
The latest gains have taken the combined value of all bitcoin tokens in circulation past $543 billion for the first time.
The below graph displays the upper trajectory of Bitcoin prices during 2020 and as per technical analysis the peak is yet to arrive.
According to statistics, Bitcoin are going head to head against market cap of established giants like Visa ($482 billion), Berkshire Warren Buffet’s Hathaway ($542 billion), Samsung ($481 billion) and Walmart ($407 billion). Currently, it is trailing behind Alibaba and Tesla but has comfortably secured the 9th highest market cap of all assets.
Bitcoin has witnessed an unbelievable year where the gains have just multiplied at every possible instance. The rising streak cannot be attributed to a single specific event but overall acceptance by large scale players in an unprecedented time has kept pushing the prices to oust new records almost every day.
Demand has started flowing from the retail investors which could be the golden opportunity for bitcoins. Though retail investors are risk averse and have limited appetite, the fact that bitcoins offer better returns than traditional financial investments have attracted them. Speculation of this becoming a mainstream payment method and firms like PayPal allowing crypto trading are a massive boost for the entire market.
Other critical factor of institutional investor expressing interest for its inflation-hedging and safe-haven qualities offer positive developments around cryptocurrency. Care needs to be taken that Bitcoin does not become an exclusive ground for short-term gains else the speculations will keep rising and more volatility will flow in.
One factor to notice is that other cryptocurrencies such as Ethereum have remained almost flat indicating that other avenues should also be explored which may not offer such hefty but consistent returns and ensuring investor safety.
We are sorry that this post was not useful for you!
Let us improve this post!
Tell us how we can improve this post?