Bitcoin, the world’s number one cryptocurrency by market cap, has got everyone feeling joy and excitement about investing again. The asset is looking to make headlines as much as it can before the end of the year, and the currency is presently trading past the $18,000 mark for the first time in roughly three years.
Bitcoin Is Experiencing a New Kind of Bull Run
The currency has shot up by more than six times what it was in March. There was a time during that month that the currency was trading below the $4,000 line, but now, the asset has been on a serious bull run for approximately 112 days. It is thereby enjoying its largest bull run since it was first introduced to the financial space over ten years ago.
Many analysts say that the present run is quite different from previous ones. For example, the asset initially rose to $20K in 2017 only to crash during the first few months of 2018. Many experts chalk this up as being a fluke but agree that the circumstances have changed over the past several weeks. They say that this time, the value of bitcoin will stick around.
Sathvik Vishwanath – CEO of Unocoin – explained in a recent interview:
This time, there are more genuine reasons for the price increase like American hedge funds adding crypto assets to their balance sheet, PayPal allowing access to its millions of customers to buy and sell cryptos followed by an announcement from DBS bank that they will soon start providing trading services for crypto to their clients. It looks like the growth we are seeing now is more sustainable and the global recession and pandemic is fueling it.
One of the big reasons that bitcoin appears to be doing so well as of late is because it has finally garnered the faith it needs to strive from institutional investors. For example, Jamie Dimon – CEO of JPMorgan – has often referred to bitcoin as a fraud, but now says that he believes in the currency, even though he, himself, is not looking to invest in it.
However, there are plenty of institutional firms that have, such as MicroStrategy and Square. Monark Modi – founder and CEO of Bitex – mentions:
The recent bull run in bitcoin is caused due to increasing investment from institutional investors, investment banks and more importantly, payment companies. This is largely owing to a shift in investor sentiment towards alternative asset classes, especially digital assets.
Value Is Likely to Stick Around
Modi also commented on Dimon’s latest stance and says that his company JPMorgan is now showing an indirect interest in crypto given its work with stable currencies (the company recently introduced JPM Coin for general use). He comments:
Judging by this heightened interest towards cryptocurrencies, bitcoin has the potential to touch $22,000 by the coming quarter.