Bitcoin has been on a massive surge over the past few weeks. At the time of writing, the asset has reached a new all-time high of more than $35,000, putting 2017’s price of just over $19,000 to complete shame. The fact is that the price of bitcoin is near double what it was three years ago, and the currency is now trading at a level that few analysts ever saw possible within this timeframe.
Bitcoin Has Nearly Doubled Its Size in Three Years
But there are many things that have been pushing bitcoin along the way. Many factors that have contributed to such a massive jump. One is inflation and the idea that fiat currencies are allegedly not doing so hot. This is largely due to the coronavirus pandemic that has spread so heavily over the past ten months.
First hitting economic markets in March of 2020, the virus has managed to do incessant amounts of damage to the globe that will likely take quite a bit of time to solve. To make up for some of this damage, governments have been overprinting money and sending out stimulus checks to citizens that have been affected, though this has somehow managed to work against them in many ways.
Many analysts have scoffed at the idea of this overprinting, saying you can’t simply pull money out of thin air. There is a consequence of printing excessive amounts of paper money, and now the Federal Reserve and similar institutions feel that things are going to get a lot worse, which could potentially make it easier for bitcoin to move to the front of the financial line.
In a recent interview, Morgan Stanley equity strategists claimed:
With global GDP output already back to pre-pandemic levels and the economy not yet even close to fully reopened, we think the risk for more acute price spikes is greater than appreciated.
The fact is that bitcoin is now just $5,000 short of $40,000. Could this price potentially be reached sometime this month? Given how strong things have been as of late, the idea of bitcoin reaching six-figure territory suddenly doesn’t seem so out of place.
The overbuying of securities by governments all over the world has prompted several top-notch investors and institutions to jump aboard the bitcoin train. Charles Hayter – chief executive of bitcoin and crypto data site Crypto Compare – explained:
With the macroeconomic backdrop of unprecedented monetary expansion and negative real interest rates spurred on by Covid-19, it is no wonder that investors of all types are looking at hard assets such as bitcoin as a gold alternative and a hedge against inflation.
Things Are Set for Further Jumps
Brandon Mintz – chief executive of Bitcoin Depot – offered similar sentiment, and feels bitcoin is about to jump even further:
The value of bitcoin in the long-term is almost guaranteed to rise due to limited supply, which makes it attractive for underbanked populations and any other traditional investors, especially when compared to fiat currencies subject to crippling inflation and unlimited supply.