With bitcoin now trading for just under $18,000 – a near $1,000 gain from just two days ago – many analysts and industry experts find themselves wondering where bitcoin will go next. The currency has been on one of its biggest bull runs since 2017, and many believe that 2020 will end with bitcoin striking its all-time high of $20,000 per unit once again.
Bitcoin Could Soon Travel to the Skies
However, things aren’t quite stopping there. Many are wondering where bitcoin will head in the immediate future. How will 2021 look? Will the currency continue to make its way up the financial ladder? This is what many analysts are speculating on at the time of writing, and according to many predictions, things are just getting started. Tom Fitzpatrick – an analyst with Citibank – is even making the argument that bitcoin could potentially hit a price of around $318,000 by the end of next year.
In a recent report, Fitzpatrick claims that bitcoin’s present momentum is rather similar with that of gold during the 1970s. Granted it continues to follow all the same patterns and maneuvers as gold did roughly five decades ago, the currency could find itself trading above the $300K line by next December.
In addition, the way bitcoin is viewed now is quite similar with how gold was viewed during the 1970s. In that time, the asset was trading for a measly $25 – $35 per ounce – nowhere near the $1,888 it’s trading for now. During that decade, the asset correlated with the US dollar. However, this all came to an end when the gold standard was seemingly pushed aside, allowing the dollar standard to take over.
As a result, USD became the currency of choice for the United States and other neighboring regions, while gold stopped being a currency at all. Rather, it suddenly found itself serving as a store of value, which allowed its price to surge practically overnight.
This is relatively similar with what’s happening with bitcoin. The world’s number one digital currency by market cap was initially created to serve as a payment vehicle – a currency that the underbanked could use to purchase goods and services so they could survive everyday life. However, bitcoin has failed in this department largely due to its ongoing volatility. Thus, it is not a payment currency, and has instead shifted more towards speculative territory.
A Whole New Attitude Surrounding It
This has allowed bitcoin to work in a manner similar with gold, especially now that the economy has been weakened thanks to the growing coronavirus pandemic. Many see the asset as a means of hedging their wealth and protecting their financial income during times of strife. In other words, bitcoin has very much become a store of value… just like gold.
Should this attitude continue over the next year, bitcoin could find itself traveling to the moon.