The recovery of the price of Bitcoin has raised a wave of enthusiasm among investors who fear being left out, the FOMO. After more than two months of low volatility, the value of the main cryptocurrency is now comfortably above 11K.
According to analysts cited in CryptoTrend in past articles, the stagnation of Bitcoin’s price could bring with it a bullish move. After a period of low volatility, it is normal for the price to rise sharply.
At the time of writing, Bitcoin is trading at $ 11,600, that is, 20% growth in less than 10 days. On the other hand, the Forbes portal shows data of a possible reach of $ 15,000 in the price of Bitcoin before the end of this year 2020.
The FOMO is present after the increase in the price of Bitcoin
The FOMO, or Fear of missing out, is the feeling of people who consider that they were late to the business and fear being left out. Not having bought Bitcoin when its price was low, and seeing now how the value of this cryptocurrency is skyrocketing, may lead more people to join the purchase of this digital currency.
Therefore, massive purchases in front of a limited number of offers, could further boost the speed of Bitcoin’s price increase. It should be noted that since the middle of last month, miners cut Bitcoin sales on exchanges.
This could create a feeling of scarcity in a market with a growing number of buyers. To this can be added the positive responses of the market to the announcements of United States banks to save funds in cryptocurrencies.
If all these aspects coincide, the price of Bitcoin and the enthusiasm of the buying market, the main cryptocurrency would be one step away from reaching the level of the year 2017, when it reached $ 20,000 USD per coin.
A cycle similar to that of 2019
According to the opinion of Joe Di Pasquale, CEO of BitBull Capital, quoted in Forbes, the current increase in the price of Bitcoin is similar to the cycle observed in the first 6 months of 2019, “When its value increased by 189%”.
In addition, it affirms that the current growth in the value of the pioneering digital currency could have as its source the growing institutional interest. In the previous months, interest from Wall Street investors has been remarkable. The same can be said regarding payment firms such as PayPal.
It should be remembered that, in the year 2017, although the price of Bitcoin reached a record figure, just a year later it had already plummeted to about $ 3,000 per unit.
In this way, Bitcoin’s meteoric rise could have few precedents, as several factors add up. It should be borne in mind that the post-Halving rebound is still awaited, which many analysts expect to materialize by the end of 2020 or the beginning of 2021.
The influence of COVID-19 and Halving
The cut to 50% of the rewards to miners by the Bitcoin Blockchain network, limited the number of cryptocurrency offerings. The result of the price increase in this relationship is about to occur.
Furthermore, the Coronavirus pandemic has pushed the United States government to print money on a massive scale. This increase in liquidity in Fiat currency and the limited number of circulating digital currencies are the perfect cocktail for the increase in the price of Bitcoin.
Added to this are the factors mentioned above, such as increased interest by institutional investors, and the spread of electronic payments.
It should be noted that, with confinements due to the pandemic, people’s risk of losing jobs has increased. For this reason, many workers are betting on saving their savings in Bitcoin and mining. With this, the use of digital means of payment could directly affect the price of Bitcoin.
Data to consider
- Bitcoin’s price growth has excited investors who fear going out of business.
- The COVID-19 pandemic has sparked people’s interest in getting closer to digital means of payment.
- In the last 10 days, the price of Bitcoin has increased by 20%, after almost three months of stagnation between 9 and 10 thousand USD per currency.
- At the time of writing, the price of Bitcoin is around $ 11,600 per coin, some analysts expect it to reach $ 15,000 by December.
The information in this content has been extracted from reliable sources detailed below.
1- Professional handling of content by the authors of CriptoTendencia.
2- External sources: Forbes.com.