Bitcoin, on the 30th of November 2020, hit a significant high. Bitcoin, the oldest and largest form of cryptocurrency, rose with a 170%rate standing at $12,864, an all-time high that has left the whole world eager to know how this happened. Here are the five major reasons.
PayPal
PayPal, an American owned electronic alternative online payment method, has made it possible for its 346 million active accounts to purchase bitcoin. This news was announced on the 21st of October, stating that PayPal users could now freely buy, sell, and possess bitcoins. The world was made aware in a statement saying that bitcoin would be a” funding source for purchases at its Million merchants worldwide.” This is a welcomed relief given the numerous traffic PayPal accumulates in online transactions each day.
OKEx
OKEx, a secure Malta-based cryptocurrency exchange site, has made it easy for traders to trade in various cryptocurrencies such as bitcoin. Recently, there have been concerns that the end of a five-week hold on withdrawals at OKEx might lead to traders liquidating and, therefore, fluctuating the bitcoin market price. Evidence was in the 24,631 bitcoins ($500 million) being exchanged 24ours after the hold had been lifted.
Rumors have also been floating around that the US Treasury Department was considering putting heavy regulations on cryptocurrency. The whales( large bitcoin traders) also had a plan to flood the market with their shares once bitcoins’ price went up.
However, the market seems to have ignored all this propaganda.
Optimistic analysis
When it comes to fighting against inflation, “the driver of bitcoin is similar to that as of gold,” said Indigo Fraser Jenkins, the Co-Head of the portfolio strategy team at Bernstein Research. This is one among the many analysts who were optimistic about the evolution and success of bitcoin.
Another analyst is the $631billion money executive Alliance Bernstein. Alliance recently published a statement in the CoinDesk Report Monday where he predicted that the post-pandemic air was an excellent opportunity for bitcoin stockholder asset allocation.
Interest from institutions
There is a lot of interest from institutions in the purchase of bitcoins. For instance, there has been a gush in the bitcoin futures contracts on the Chicago mercantile exchange. Many more big investors had speculations on the price of cryptocurrency on the commodity market, as showcased on the Jp Morgan post.
These interests are happening because institutional investors are using bitcoin exposure like in the trading into the public trade GBT (Grayscale Bitcoin Trust), a unit of the Digital Currency Group and owner of the CoinDesk.
Future forecast from the Hedge Fund Managers
If you talk to some of the most popular Hedge Fund managers about bitcoin, they would without a doubt tell you that bitcoins are a long term investment. Paul Tudor Jones II and Stanley Druckenmiller exemplify prominent managers who predicted the increase in bitcoin prices as the federal reserve continued to print money. This money will help the government fight against the covid-19 emergency-stimulus-fund. Today, the World Bank has printed over $3 billion new notes, three-quarters of all the money ever published in its 107 years of money printing.
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