Bitcoin Price Breaks Above 20,000 USD-Institutional Investors Are Driving Bitcoin Price Or Is It Bitcoin Halving 2020 Effect
After almost three years, the time has finally come. The Bitcoin price has broken its old all-time high and is currently above the 22,000 USD. The sharp increase was anticipated for weeks, and everyone was enthusiastic and waiting for Bitcoin to cross the 20K mark.
Bitcoin has become a recognized financial product. When the Bitcoin price corrected to as low as USD 3,000, we kept saying that it was only a short-term correction and that BTC would return to an all-time high. There’s been more than enough evidence in recent years that Bitcoin’s journey is far from over.
Private investors were unsettled by falling prices and turned their backs on bitcoin. Investors who are familiar with financial markets have taken this opportunity to invest even more in BTC.
But this year is no longer dominated by private investors, as it was in 2017. Much has happened in the meantime, and Bitcoin has become a recognized financial product.
Institutional investors are currently showing increased interest and investing billions in Bitcoin. It seems that the big players have also recognized that BTC is suitable as a hedge against inflation.
Almost daily, applications from companies are submitted to the SEC to invest in Bitcoin. And it seems that it is only the beginning. The wave of institutional investors that was long-awaited has finally arrived.
Wall Street money will slowly but surely flow into Bitcoin. Although in the start it will only be a fraction of the total volume of Wall Street, it is still sufficient to push up the BTC price .
Bitcoin Halving 2020 Effect
The history repeats itself, and after Bitcoin halving 2020, we again see an uptrend in Bitcoin price. Because of recent halving, BTC’s supply is reduced from 12.5 bitcoins per block to 6.25 bitcoins. The next few years are incredibly bullish for Bitcoin. Bitcoin’s strong demand is met by a falling supply, an economic principle, for a price increase. Even today, daily Bitcoin purchases exceed the daily production volume of new BTCs.
In 2024, There will be another halving for Bitcoin, which will result in a further shortage of supply; if the demand for Bitcoin continues to rise by that time, there will be another sharp rise in Bitcoin’s price over the next few years.
Everyone in the crypto community is happy that Bitcoin is above 20,000 USD. It’s been a challenging and stony road for BTC, but Bitcoin is a revolution and will massively turn our money system upside down over the next 50 years.
Originally published at https://thecryptobasic.com on December 17, 2020.