Bitcoin Battle To Cross 20,000 USD-Touched 19,860 And Still Above 19k-Why Bitcoin Bulls Are So Strong
Bitcoin reached a three-year high, exceeding $19,860 on most exchanges, but has not yet been able to overcome 20,000 USD.
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On the evening of November 30, 2020, Bitcoin again stormed the $20,000 level, which it reached as close as possible on November 18, 2017.
That is not the time for holders to celebrate. Reaching $19,840 — $19,870 on various exchanges, Bitcoin did not hold the bar and fell to $19,000, but then rose again. Fluctuations in prices will continue. But the bulls are unlikely to retreat, and they will start pushing the price up also.
Reasons Of Bitcoin Bull Rally
The bull rally of Bitcoin began in August after analytical firm Micro Strategy and several other companies started to invest in Bitcoin.
Quantum Economics analyst Jason Deane said that large companies that buy Bitcoins are more likely to hold them for the long term rather than selling them on the crypto exchange because of price fluctuations.
His assumptions are confirmed by the words of MicroStrategy CEO Michael Saylor, who believes that Bitcoin is the best means to preserve values.
In October 2020, MicroStrategy investments were followed by Square, owned by Twitter founder Jack Dorsey. Square bought 4709 BTC for $50 million, after which the rate of crypto-asset rose to $10,935.
Later, the payment giant PayPal entered the cryptocurrency arena, announcing cryptocurrency support for American users. Perhaps the rapid rise of bitcoin was influenced by statements from large companies’ heads commenting on investments in this Bitcoin.
American billionaire Stanley Druckenmiller believes that investing in bitcoin is much more profitable than investing in gold. A week ago, the Director of the investment company BlackRock, Rick Rieder, also said that Bitcoin is a reliable mechanism that can replace gold.
According to Binance Research experts, several other factors explain the growth of the Bitcoin rate.
First of all, many investors see bitcoin as a protection against inflation. Given that governments of various countries continue to print money during the crisis and pandemic, because of which value of even the most stable fiat currencies is falling.
It is not surprising that people are beginning to perceive Bitcoin as a protective asset. Increased regulatory control and the futures market’s development have become another factor contributing to Bitcoin’s growth.
Today’s cryptocurrency market is significantly different from what it was in 2017. Over the past three years, many companies that comply with strict regulatory requirements have obtained a license to perform brokerage activities. This has significantly simplified companies’ access to cryptocurrencies. We can say that Bitcoin is in uncharted territory, and it is impossible to predict what highs lie ahead if BTC breaks the figure of $20,000.
Albert Brown has obtained his master’s degree in Stock Trading And Investing. His specialty is analyzing the price actions of crypto and stock markets. Albert provides a major role in TheCryptoBasic as a crypto analyst. He is also known for his work on Twinkle Magazine and TipRanks.
Originally published at https://thecryptobasic.com on December 1, 2020.