Bitcoin Surges, But Why?
Well, 2020 continues to be full of surprises! Who would think that we have this type of crypto news to report, but it's true.
Bitcoin recently broke records. “The all-time high is a major psychological barrier-breaking; it requires real momentum,” said Jason Deane, a Bitcoin analyst at the blockchain analysis company Quantum Economics. And what’s good for Bitcoin tends to be good for altcoins: XRP was recently over $0.60 and Stellar spiked earlier this week; it was up almost 100% over the past seven days. On November 23, XRP passed the $0.50 mark for the first time since 2018.
As for why the price of Bitcoin is heading back up, Eric Wall, Chief Investment Officer for crypto investment firm Arcane Assets, told a digital currency outlet that it may just be par for the course. “It is quite common that it struggles to move past a previous ATH, and experiences a dip instead,” he said.
Wall attributes the rise to “market psychology,” rather than events like expiration of about $1.3 billion in Bitcoin options. But other analysts have chalked this year’s bull run up to large-scale investments from MicroStrategy, a tech company that put $425 million in Bitcoin in August and September, and Square, the payments service from Twitter’s Jack Dorsey, which invested $50 million in October. Since then, the price of Bitcoin has nearly doubled.
We'll be keeping a watch on all this for sure. It seems to indicate more acceleration toward digital currency penetration, and even though many naysayers continue to bet against, the younger crowd still seems to be all in. Stay tuned.