Bitcoin is in the midst of one of it’s strongest gains in history as its price has surged past the $50,000 mark. That means the largest cryptocurrency in the world is now worth over $921 billion.
The Cause For the Rise
The price of Bitcoin has rising thanks to new stimulus policies expected to be implemented by the Biden Administration. A portion of the new money flooding the market will likely be invested by young, tech savvy Americans into crypto. This will result in more mainstream financial services utilizing Bitcoin in their management portfolios. Therefore the price is expected to continue to rise if more stimulus money is released.
Big Players Took Advantage of the Drop
When the price dropped below the $30,000 level in June there were a “lots of large players” taking advantage of the 50% discount of April’s all-time high, according to Luno head of business development Vijay Ayyar. The result is a 60% gain since it’s June low of $29,300.
Ethereum has seen even larger gains than Bitcoin with a 91% return since dropping to $1,740 in July. The world’s second largest cryptocurrency is now trading at $3,353 and has a market cap of $392 billion.
What Does the Future Hold?
Will Bitcoin reach its all-time high of over $64,000 in the coming months? A few bulls are expecting the cryptocurrency to surpass $100,000 by the end of next year. Then again, it could drop back down below the $30,000 level again. Only time will tell.
What are your thoughts? Do you expect the price and demand for Bitcoin to continue to rise? Share your thoughts with us in the comments below.
