Bitcoin (BTC) bulls continue to be in control of the market. The cryptocurrency was able to move above $14,500 for a brief period of time. This was the first time since January 2018 that Bitcoin is able to surpass that region. Bitcoin is at the highest point ever reached and without being in a bubble market as it happened in 2017. The main question is to understand when this will stop and how far could Bitcoin go.
Bitcoin Surpasses $14,500
The largest cryptocurrency in the world was able to surpass $14,500 for the first time since January 2018. At that time, Bitcoin was entering a long bear market that pushed the digital currency to $3,200. The situation is completely different now. We could see Bitcoin moving higher every single month and the market seems to be processing it very positively.
There are some analysts that consider that once we cross $15,000, the next step is to move towards $20,000, Bitcoin’s all-time high. Nevertheless, some other analysts consider it may be better for Bitcoin to experience healthy corrections while moving higher. After the bull market of 2017, it was very difficult for Bitcoin to sustain the price reached and it entered a long-term bear market.
During the last few days, with the volatility around the election in the United States, Bitcoin and stocks were traded in very similar patterns. And indeed, BTC experienced a high correlation with stocks.
It is also worth taking into consideration that there have been high profile companies adding Bitcoin support in recent months. For example, PayPal announced support for Bitcoin and other cryptocurrencies. Users will now be able to buy and sell virtual currencies using their PayPal account in just a few seconds.
Furthermore, the Nasdaq-listed Microstrategy has acquired $425 million in Bitcoin in order for the company to gain exposure to the largest and most valuable virtual currency in the world. This comes after Square decided to put 1% of its total assets in Bitcoin.
The entire cryptocurrency market is now expanding at very high speeds, and this can be seen after a year in which Bitcoin halved and where the price of the digital currency plummeted below $4,000 during the COVID-19 sell-off in traditional financial markets. Now, traders and investors are waiting for Bitcoin to surpass $20,000 and reach new all-time highs.
2021 could be a very positive year for Bitcoin and we could definitely see new prices for the largest cryptocurrency.