Bitcoin Goes Above $16k for the First Time in Three Years
Leading cryptocurrency Bitcoin hit a three-year peak on Thursday with the price surging above $16,000. The surge in price culminated a week in which Bitcoin has massively consolidated its bullish trend towards the $20,000 mark.
Bitcoin Surge Continues Despite U.S Elections
BTC has been able to navigate a tricky November in which the US elections occurred. There has been uncertainty around the crypto ecosystem amidst the United States Presidential elections. The stance of the president-elect, Joe Biden could bring about inflation and see bitcoin used as a means to wedge inflation.
Kyle Davies, cofounder of Three Arrows Capital emphasised that it is expected that investors will switch from holding cash to holding bitcoin, especially as institutions are now moving to hold bitcoin. There has been an increased interest in institutions towards the leading coin and it is expected that this will continue in the coming weeks.
Several companies have recently been endorsing the use of bitcoin as a store of value and in the long run, bitcoin will outperform gold. On September 15, business intelligence firm, MicroStrategy announced the purchase of $250 million worth of bitcoins, followed by Square investing in the blockchain market with $50 million worth of bitcoins.
By October, the Chicago Mercantile Exchange had institutions holding record long positions in bitcoin futures. This pushed leverage in the derivatives market on a bullish phase.
There is a possibility that bitcoin’s recent price surge has been because of the increased institutional participation in bitcoin. The number of bitcoin addresses holding at least 1,000 BTC rose to a four-year high by the end of October.
In addition, the Bitcoin retail industry could also make huge transactions in the market that could push it beyond the all-time high of $20,000.
Altcoins also in Green
Analysts expect a price pause so altcoins can rally while Bitcoin stays around $20,000 by the end of the year and between $50,000-$80,000 by the end of 2021. Other cryptocurrencies have also shown great gains with Ethereum and Litecoin having between 1%-2% gains and OMG rising by a whopping 8%.
It appears that we could be heading for another crypto boom that could surpass that of 2018 where several coins hit their all-time highs. With the development of the DeFi sector, the crypto industry continues to evolve and looks to be the next major force in mainstream finance.