on the crypto
Bitcoin, the best cryptocurrency in the world by market cap, hit a high of $ 16.470 on November 13, a price that was last seen on January 6, 2018.
Bitcoin's growth does not stop
The slow growth of Bitcoin (find out how here buy Bitcoins) accelerated on Friday last week, with the price of the cryptocurrency hitting a three-year high, hitting a high of $ 16.470.
The action came at the end of a period in which the price of the cryptocurrency was in the process of consolidation, hovering in the range of $ 14.000 to $ 16.000. Bitcoin therefore recorded a 123% year-on-year increase, with a gain of nearly 50% in the first half of this quarter. Bitcoin's price then fell rapidly below $ 16.000 on Saturday morning, and then stabilized slightly above that threshold.
Analysts expect to stall at $ 16.000 before rallying to $ 20.000
In recent months, Bitcoin has benefited from the approval of several publicly known companies and large investors as an asset that acts as a store of value. Last Monday, Stanley Druckenmiller, a US billionaire investor, revealed that he has a stake in bitcoin and said that bitcoin will overtake gold in the long term.
Some analysts have also said that the bitcoin price could consolidate for a short time before moving towards $ 20.000 in December. The bitcoin options market is also extremely bullish over the long term, as data showed on November 12 and 13 that net demand for call options (bullish bets) was outstripping net demand for put (bearish bets) with the level. highest ever recorded.
The other major cryptocurrencies also recorded growth over the same day, with Ether and Litecoin having gains between 1% and 2% and OMG up 8%.
US elections and institutional participation
A few days ago, the last presidential elections in the USA ended, won by the democratic candidate Joe Biden. It is to be expected that the future political choices of the new president will influence the fiscal policies of the country, and with this also the trend of inflation, against which bitcoin is often proposed as a hedge.
According to Kyle Davies, co-founder of Three Arrows Capital, the fiscal stimulus made available by the Federal Reserve to cope with the coronavirus emergency will contribute to the growth of bitcoin, as investors who hold cash will continue to allocate in bitcoin.
If it is true that, in 2020, bitcoin has seen participation mainly by institutional entities, things could change when the previous all-time high of $ 20.000 is exceeded. At that point, many analysts are expecting many new retail investors to come into play, Davis explained.
