As BTC surpassed the $17k mark, lots of punters are jumping around and predicting an ATH coming soon. One has even predicted a high of $380k in the not too distant future.
Why the jump in price? Covid-19 seems to have had an effect on investors looking to diversify somewhat. Traditionally this has been Gold and Cash, but investors are starting to eye Bitcoin as another option that is not centralised or controlled and has great return potential. The limited supply of Bitcoin at 21 million is attractive as a cryptocurrency. No inflation and some essentially lost forever from the early days of the coin.
With adoption by Square and now PayPal, it is only a matter of time before other large finance institutions look at adopting bitcoin. The only downside to investment at the moment is the volatility of the Bitcoin market. Swings of $1k can be seen often and this can scare investors away. Hacks of accounts has also been a deterrent for large holders.
Trust accounts seem to be a good way to get investors into cryptocurrency with Grayscale now holding over $10 billion in cryptocurrencies.
Will Bitcoin continue to moon or have a corrections soon? What implications will the strength of Bitcoin have on some of the Alts and the Hive-Engine tokens?
Only time will tell.
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