Bitcoin, after climbing steadily since early September, has suddenly leaped higher—jumping toward its all-time highs of around $20,000 per bitcoin set in late 2017.
The bitcoin price is up around 10% over the last three days, soaring toward $19,000 even as the recent equity market rally stalls.
However, some have warned a bitcoin price correction might be just around the corner—with one bitcoin price analytics company predicting bitcoin could soon fall back to just $14,000.
“While still bullish long-term due to macro-economic factors and large corporations getting into crypto, we expect bitcoin could correct back to around $14,000 by the first week of December.” Says Ian Balina, the chief executive of Washington-based Token Metrics.
This fluctuation in BTC prices has been building since mid-March. Since then, over 1 million bitcoin have been bought by investors, mostly from Western exchanges. This growth in demand is meeting a shrinking supply, as fewer and fewer bitcoin holders are willing to sell, with the supply of bitcoin liquid and available to buy as low as it was in mid-2017, before the previous bull run. Panic sellers are getting rid of their BTC reaping the profits quickly made. Even some investment funds and banks are selling to make quick profits for their bottom line before the year-end. Many use this technique to kill the price of BTC so they can buy back at the low prices to get ready to sell again later. Expect price variations between now and the end of 2020.
Last month, the bitcoin and cryptocurrency market was set fire, first by the news that payments giant PayPal were going to roll out support for bitcoin, and a handful of other major cryptocurrencies, and then again by payments that rival Square revealing it had added $50 million worth of bitcoin to its corporate treasury.
The two developments turbocharged the already stimulus-inflated bitcoin and crypto market, with many long-suffering bitcoin supporters predicting the latest rally has a long way to run. Many expect the $20,000 level to be reached before December 31, 2020.
The last time bitcoin was at these levels was December 2017, the peak of a year-long rally that collapsed through 2018. This time around, without the bitcoin mania that was sweeping the world in late 2017 pushing up the price, traders are feeling more secure. Beyond 2020, bitcoin and cryptocurrency investors are almost universally bullish—with many expecting bitcoin to climb far higher than ever before due to the supply limits and the large institution’s investment fund purchases.
Predictions are around that the price of 1 btc should reach $23,000 before the year runs out, but remember that all these statements are just predictions and anybody can make a prediction.
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