The bearish season has just ended, and the crypto market is rising again. And the flagship crypto is leading the pack with an 80% rise from its December lows. The million dollar question is, will the gains continue? Or better yet, how high can bitcoin’s price go?
Bitcoin is yet to achieve its ideal status of mass adoption. There is even a debate on whether the crypto-coin is truly decentralized when it comes to payments as promised by creators. This means that bitcoin still has a long way to go.
In spite of the unfulfilled dreams, when it comes to bitcoins and cryptocurrencies in general, one thing is for sure; there is utility in the inherent technology and where there is utility, there are opportunities.
As prices are going high, enthusiasts will be keen on seeing bitcoin’s price go above $20,000; the peak price reached in December 2017 when cryptocurrencies went mainstream. Here are some reasons why it may beat its previous record.
Bitcoin Is The Gateway Crypto
It may sound cliché, but it’s true, bitcoin is the most popular cryptocurrency. People hardly differentiate bitcoin from the blockchain. That’s because of the media dominance, that bitcoin enjoys.
A study by YouGov.Omnibus indicated that bitcoin led in cryptocurrency awareness with 71% followed by Ethereum at 13%. Another study showed that 18% of college students have owned or own bitcoin while another 26% are interested in a cryptocurrency course.
These statistics speak to the fact that blockchain, cryptocurrencies, and bitcoin has utility, and its awareness is spreading.
Bitcoin Is The Most Stable Crypto
We know that bitcoin’s price is volatile, but in comparison to other cryptocurrencies, bitcoin is actually stable. In addition, bitcoin’s price volatility has been on the decline while market dominance and hash rates have stabilized to satisfactory levels.
Marketwatch has reported the 2nd lowest volatility month ever. It’s interesting to note that the same observations; low volatility readings have been recorded just before each Bull Run.
There Is A Growing Infrastructure Around Bitcoin
The support around bitcoin is not the same as before. There has been a tremendous growth of infrastructure around bitcoin. The bitcoin community has come out to give a helping hand to the development team in improving the network and other ongoing projects.
It may be ironic that the technologies of altcoins like OmiseGo and Ripple are helping Bitcoin become widespread, but who cares? So long as it’s benefiting blockchain adoption.
Rising Institutional Interest
You cannot deny that bitcoin is turning heads. Institutions are looking for ways to get into crypto. Whether by incorporating the same in some of their services or venturing into crypto on their own. They have promoted blockchain all the same.
Despite the bearish run that saw the crypto value market down by over 80%, more multinationals are literally fighting to incorporate bitcoin and the technology to their business. We know that Facebook is preparing its own coin. Telegram and others will soon follow suit.
Bitcoin Is Getting Scarcer
Bitcoin is getting scarcer and scarcer. There can only be 21 million BTC ever. No central bank or authority can ever issue nor is there a way to mint more. At the moment, 17.67 million BTC are in circulation. That is 85%, not much is left.
Also note that of the 17 million BTC in circulation, 4-6 million is lost or irrecoverable. Meaning someone lost his wallet, can’t remember his keys.
Currently, BTC is moving up steadily. It won’t be long since it reaches $5,800 resistance levels and soon to $8,000 where there will be increased media coverage. BTC price has reached $20,000 before, and the above reasons show it can go beyond.