Recently Bitcoin price nearly hit $14,000, building on bullish excitement for crypto over the last few weeks. While it’s the all-time high price is near $20,000 back in 2018, many new developments have launched in recent weeks that could drive its price back above all-time highs.
This article will analyze Bitcoin’s potential to do just that.
Money is Pouring Into Bitcoin
Bitcoin has had a significant 2020 so far. The network went through its scheduled halving in May, cutting its rewards in half and making the asset more scarce. Many expect this scenario to increase its value over time.
More recently, payment giant PayPal just announced it’s now allowing it’s users to buy and sell cryptocurrencies on its platform, including Bitcoin, Litecoin, Ethereum, and Bitcoin Cash. Popular Bitcoin investor Mike Novogratz noted this news as:
“the biggest news of the year in crypto.” All banks will now be on a race to service crypto. We have crossed the rubicon people. Exciting day.”
This news spiked Bitcoin’s price, with the asset reaching over $13,000 for the first time in a while. As of this writing, the price is holding steady above that mark, hinting at a possible larger rally as time goes on. But we don’t need to leave that to pure speculation.
PlanB is a top cryptocurrency analyst and founder of the Bitcoin stock-to-flow model. This model puts Bitcoin’s scarcity against its current circulation, predicting its price as the asset becomes rarer. The analyst tweeted in September that Bitcoin’s price is following the model closely. Should this continue, his model points toward a crypto price prediction of at least a $20,000 Bitcoin by year’s end.
The Crypto Research Report – a reputable study produced by a group of experts, predicted a $19,000 Bitcoin price by year’s end. It reasons that Bitcoin is “still at the very start of its adoption curve,” and will surge as it penetrates the market.
Institutional interest is on the rise as well, with analytics group Skew revealing an additional 1,500 futures contracts opened in mid-October alone. These contracts were opened on CME Group as well, making it the second-largest Bitcoin futures exchange on the market. Futures are a fantastic prediction of Bitcoin’s potential performance, and most are purchased with institutional money.
It’s important to consider developments in the space. Technological improvements are the foundation that will keep Bitcoin going past initial speculation. Who better to fund these than big business?
Crypto Company Acquisitions Are Rising
On top of PayPal introducing cryptocurrency wallets, the payments group is reportedly interested in buying BitGo, a Bitcoin custodian the company could use to improve its technical offerings. Assuming PayPal acquires them and other crypto companies, the general public could increase their interest in the space and drive up the price. If you’re wondering how to make money with Bitcoin, now is the time to learn.
Do these investments mean a $20,000 Bitcoin before 2020’s end? It’s possible, considering the asset price has a history of rapid increases. However, the question isn’t if, but when. Even if Bitcoin doesn’t hit $20,000 in 2020, it may happen over the next couple of years. As businesses and institutional investors continue pouring in money, the asset’s foundation will solidify, and its value will continue to rise.
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the crypto currency they discuss. The information and content are subject to change without notice. Visionary Financial and its affiliates do not provide investment, tax, legal or accounting advice.