Bitcoin is on a serious roll as of late. The world’s number one cryptocurrency by market cap has been surging over the past few days, and it looks like the asset’s price is just getting bigger and bigger with each passing moment.
Bitcoin Is Exploding As of Late
Just yesterday, bitcoin moved well past the $12,000 mark and was trading for about $12,700, marking the highest point it’s reached in over a year. The last time bitcoin hit $12K was in late August, only then, the asset struggled to maintain the momentum it needed to stay on a bullish path.
This time, however, things are quite different. Bitcoin has spiked again and gone well beyond the $12,900 position. Just a few dollars more and bitcoin will hit $13,000, and many analysts are confident this will soon occur. In fact, several claim that investors should be looking forward to bitcoin hitting $14,000 soon.
Bitcoin’s sudden jump comes following news that PayPal – an online payments firm – is allowing people to use cryptocurrency as a means of payment for goods and services. This is the first time the platform has enabled such a move, and it’s getting widespread attention from investors and traders everywhere who now believe that crypto is reaching a new position in its fight towards mainstream status.
Constantine Kogan – managing director at digital asset firm Wave Financial – commented in a recent interview that:
2020 is fast becoming the year of crypto acceptance and we see 2021 as the year of mainstream adoption. All of this is bullish for the price of bitcoin and it’s safe to assume that bitcoin will remain a strong bullish trend. We believe a year-end price beyond $14,000 is easily achievable as the market hasn’t fully absorbed all the positive news.
Aside from the data regarding PayPal, many are still waiting with bated breath for more stimulus checks to emerge from the ashes of Congress. Many are confident that Americans can expect another round of checks to help them out during this time of economic strife. Simon Peters of e-Toro fame stated in a recent discussion:
It will also be interesting to see how any news regarding a fiscal stimulus package in the US affects bitcoin prices, given the crypto asset’s recent high correlation with US stock markets. Investors should look to $14,000 as the next target, a high not seen since June 2019.
Will We Soon Be Back in 2020 Territory?
Some are confident that bitcoin’s good fortune is set to last and will bring it close to where it was during the final months of 2017. Nigel Green – chief executive of deVere Group – states:
There’s a growing sense that we’re set to experience a mini-boom similar with that at the end of 2017. Prices are yet to catch up with investor interest, but this is only a matter of time as investors will not want to sleepwalk towards perhaps year-high prices in the run up to the end of 2020.