At the time of writing, the price of bitcoin is up another $200. The currency is now trading for over $11,500, marking the coin’s highest peak in well over a month.
Bitcoin Has Reached a New High
The currency is recovering from a rather lackluster September that saw the asset lose roughly $2,000 off its price. Bitcoin hit the mid-$12,000 range in late August, though by the time the new month began, the currency had fallen to about $10,100. The asset hovered here for some time, eventually spiking beyond $11K again in the middle of September, though things lasted less than a day. It wasn’t long before the currency fell back into oblivion, letting its many loyal fans down for the umpteenth time.
Now, however, it looks like October – marking the start of the year’s fourth quarter – is bringing about a whole new level of security to bitcoin. Many are seeing it as a way to hedge their wealth against inflation, which is not doubt leading to further purchases from big companies such as MicroStrategy and Square, which recently garnered $50 million worth of the world’s most prominent digital currency.
However, this may not be the only reason why bitcoin is suddenly on the rise. Other things in the news include renewed interest in stimulus talks, which is potentially allowing bitcoin to a little more stability. To be fair, these talks have been going for months and very little has come of them, though it seems as though whenever Congress gets back into the gist of wanting to offer struggling Americans “free” money, bitcoin tends to spike somewhat.
This is exactly why bitcoin first rose to $10,000 in July. The second stimulus talks stem from the summertime, which means it’s been months since this idea was first introduced to lawmakers and yet nothing has emerged. Still, bitcoin tends to react the same way regardless of the lagging results.
The next big thing in the news? The election. We are now just three weeks away from deciding who America’s next president will be. Are most people eager for another four years of the Trump administration? Or are they intrigued by Joe Biden? Either way, elections have typically led to major spikes in the bitcoin price, and this year is likely to be no exception.
The Election Will Make a Difference
In 2016, following Donald Trump’s taking of the White House, the price of bitcoin surged and ultimately moved beyond the $1,000 line. This was the first time that bitcoin had struck such a chord in roughly three years. The currency had been trading in this range in 2013 but had endured about three years of hard struggle since then.
Regardless of what the U.S. election poses, many analysts can seemingly agree that the results will have a huge effect on bitcoin.