Earlier in November, we saw Bitcoin soar to $15,000 on a post-election craze. It became the largest cryptocurrency by market capitalization, currently valued at $345 billion. Bitcoin’s performance propelled other popular cryptocurrencies, too, such as Ethereum and XRP. The recent surge of the popular cryptocurrency almost reached the all-time $19,000 threshold, fuelling hopes that Bitcoin will beat its previous record.  In fact, a senior analyst from Citibank – Thomas Fitzpatrick – has suggested that Bitcoin could be worth $318,000 by December 2021, dubbing Bitcoin ‘21st-century gold. According to Max Keiser, banks will be coming up with competing predictions “…but none of them are going to capture the ultimate bull market number because remember, bitcoin has no top because fiat money has no bottom.”

 

Bitcoin’s all-time Trading Chart

Cryptocurrencies are becoming recognized and welcomed globally as governments attempt to mitigate the chaos and economic devastation that spread along with the COVID-19 pandemic. Government-backed currencies are hanging by a threat as their value drops. Just a couple of days ago, the Society for Worldwide Interbank Financial Telecommunications (SWIFT) announced that the euro (€) surpassed the dollar ($) as the currency for global transactions for the first time since February 2013.

It is estimated that in 2020 alone, the Federal Reserve has printed 22% of all the USD issued since the birth of the nation. Alarms about hyperinflation are going off, and people are looking for alternatives. This, coupled with the fact that the Office of the Comptroller of the Currency (OCC) has given the banks a green light to offer cryptocurrency services, has been the catalyst for the crypto kick-off.

Bitcoin and cryptocurrencies, in general, are already being used as a hedge against inflation in other countries like Venezuela and Iran, but recent events have seen corporations turn their focus on cryptocurrencies too. It is of no surprise then that NASDAQ-listed billion-dollar companies are investing in Bitcoin. MicroStrategy has purchased $250 million worth of Bitcoins, and PayPal bought up almost all of the newly mined Bitcoin since it started offering crypto services recently.

There’s a real bullish momentum happening right now, and everyone is jumping aboard because crypto comes in finite supply and cannot be manipulated. There are worries of a 2017 repeat when the price spiked to its highest before suddenly dropping significantly. However, Bitcoin’s current rally seems much more sustainable due to the rise in institutional demand. Companies like PayPal, Cash App, and Robinhood all offer Bitcoin services and make simplify the buying process.

The Bloomberg Galaxy Crypto Index, which tracks cryptocurrencies, has increased by 120% while gold remained at 30%.

All these events signify a change of environment for the crypto world.