Bitcoin Hit $60k - Where Will It Go Next?
After a few bumpy years, Bitcoin regained its previous peak at $20,000 on December 16, 2020. Recently, however, for the first time, Bitcoin went above $60,000 and this indicated a new era for the cryptocurrency. The highest point was $61,556 on March 13, 2021 and has settled at $52,555 on March 26, 2021. Despite the fluctuations in recent days, there’s a good chance that Bitcoin will go up sharply again in the coming months. In the past, retail investors have fueled bitcoin’s surge, but now is the time for corporate investors to act. More and more global companies are moving a portion of their corporate reserves into cryptocurrency and experts say that this trend could lead bitcoin into the next decade and drive prices higher than ever.
Supply, demand, and global economic situations are the common factors of Bitcoin valuation. For bitcoin investors, the biggest question is - where it will go next?
Bitcoin Is An Unrenewable Digital Resource
If you are looking to invest in cryptocurrency, Bitcoin is always the first option to consider. As the most popular cryptocurrency, it always has a huge supply and demand cycle. Its supply side is extremely easy to understand. A bunch of miners with high-performance computers “unearth” untapped Bitcoin tokens, which can be purchased by investors or regular consumers for online transactions. In total, there are only 21 million Bitcoin tokens and to this day, 18.6 million tokens are already in circulation. With nearly 1,000 new tokens mined each day around the world, the remaining reserves will be exhausted one day. Because Bitcoin is an unrenewable digital resource, its value will continue to increase. Other cryptocurrencies also have the same concept, but Bitcoin remains the most popular.
The Involvement Of A Major Public Company
Tesla bought $1.5 billion worth of Bitcoin and it’s a watershed moment in the cryptocurrency sector, signifying the involvement of a major public company. For Tesla, Bitcoin is used as a hedge to reduce impacts of inflation. Other major companies may soon follow Tesla’s lead and if this happens, demand will quickly outpace supply, resulting in higher pricing. It’s not too surprising for Bitcoin to hit the $100,000 mark if major companies start to invest in Bitcoin. In short, there’s a good reason to own and invest in some Bitcoin tokens. Even among top investors and financial experts, the growth of Bitcoin has impressed and dumbfounded them. In less than ten years, Bitcoin and other cryptocurrencies have become a strong alternative platform for regular currencies. Despite the huge promise, it’s important to be aware that Bitcoin can be very volatile. As a retirement portfolio, the fluctuation of cryptocurrency can be ulcer-producing and it’s important to mix it with steadier and less volatile assets.
