It just goes to show you that bitcoin should never be held in doubt. The currency – which had recently fallen by about $400 to around $15,800 – has shot up by more than $1,000 and is now trading for approximately $16,800. As we edge closer and closer to the holiday season, it appears more likely that bitcoin will potentially repeat its 2017 patterns and hit the $20,000 mark.
Bitcoin Is on a Serious Roll
The currency has had a very up and down year, but as of late, the asset is dead set on the bull run of the decade. The currency has grown by about five times what it was in early March, a time when it was trading (briefly) for just under $4,000. Now, the currency is on the verge of striking the $17,000 mark, making it one of the most profitable – if not the most profitable – assets of the last ten years.
Many analysts are now commenting that bitcoin could potentially find itself trading above the $318,000 mark by the time we’re ready to say hello to 2022. That’s right. By the time 2021 comes to an end, bitcoin could be trading in the six-figure range, and one unit could easily be selling for more than $300K.
But there’s something we need to be wary of. Remember at the end of 2017 what happened? Bitcoin fell apart. We entered 2018 and the currency, which had spent the last 12 months doing extremely well, decided it was time to retract and stumble back into the darkest territory of the crypto space. Is it possible that this could happen again once 2020 is over?
On the one hand, bitcoin has easily become more mature in the last two to three years. The currency is not as vulnerable to manipulation, and the asset has proven itself capable of shooting beyond what investors initially thought possible. The coronavirus pandemic initially spelled gloom and doom for the world’s number one cryptocurrency by market cap, but it took only two short months for the asset to recover, and from there, it only added more onto its price.
The Vaccine Could Put a Damper in Crypto’s Plans for the Future
At the same time, we are now hearing more news of a COVID vaccine, which could be distributed as early as next month to millions of Americans. Many of these new vaccines are more than 90 percent effective, which of course is a good thing. So long as human lives are saved and protected, that’s really all that matters.
But we cannot forget that one of the big reasons why bitcoin is doing so well is because the US dollar has fallen. The dollar has fallen because of COVID and granted the virus eases and fiat currency becomes stronger we could see bitcoin stumble back a bit.