Bitcoin’s price is currently around $19000 on the market, and to some experts, we might see it go up to $100000 in the next couple of years. Many see the current market as bullish, whereas during the last month (November 2020), over 60% of Bitcoin hasn’t moved in a whole year which is a new record. Many say we are entering the fourth Bitcoin era and that it will be fully bullish.
Exciting things are happening around Bitcoin nowadays, and retail investors are patiently waiting. It looks like everyone is trying to be very careful around it during this year since the pandemic affected jobs and companies. Some cash on the side is needed more than ever. If we approach it from the historical point of view, this should be the calm before the storm, and not only traders but crypto brokers are also optimistic that Bitcoin will become all the rage in the next year and a half.
The Pandemic Effect
We are still living in a time of corona hitting every state and their economy hard, creating panic amongst traders. However, if you are experienced or rather calm-headed in situations like this, you can be ready to earn the profit. A few weeks ago when Bitcoin surged about $2000. It was an excellent opportunity for investors to stock up and then wait until it rises again. If you follow the market regularly, you certainly remember how much everything plummeted once corona hit, but see how it recovered now that we’re approaching the end of 2020.
Another crucial thing that happened is that many companies, both public and private, adopted Bitcoin to serve as their reserve currency, Microstrategy being the first to do it. That means it’s even harder for any authority to try and ban Bitcoin (yes, they’ve tried and failed so many times). This also indicated millions are now invested into Bitcoin indirectly by holding shares of companies who decided to adopt Bitcoin. Smart, right?
Paypal going all-in
In October this year, Paypal (have in mind their market cap is $250 billion), decided to store, buy, and sell many cryptos using their platform including Bitcoin, making transactions easier even if you want to trade other cryptocurrencies. This also influenced around 25 million merchants, including small businesses, to start adopting crypto at the beginning of 2021, which will be a massive step for the whole crypto community. What’s more, the firm said it would enable its 26 million merchants to accept crypto as a payment method, starting in early 2021. This news was huge, and that’s what essentially made crypto prices go higher.
PayPal has over 200 million users, and they plan on introducing their customers to crypto and the way they can invest in it. This means crypto will be the most accessible, and internet transactions will be even higher. This will mark the beginning of real commerce that was anticipated for years. Paypal is a giant that is a highly regulated financial institution which will give people an added sense of security and who knows what we will see in 2021 once this gets in motion. There’s no more excuse for not accepting Bitcoin.
While talking about trading, it seems like it’s better to keep the holding strategy or buy crypto if you can. We spoke about implies that long-term strategy will benefit everyone a lot, especially if you are not really into risky activities.
On the other hand, if you are an experienced and cold-headed trader even amidst panic and insecurity, you can start trading. Yes, Bitcoin’s tendency to advance is excellent, but the prices are quite volatile especially during the pandemic, and if you have a knack for it and you’re in the industry for a long time, this is an ideal time for you to gain profit. Just don’t get too cocky (volatility, remember?). Otherwise, store Bitcoin and wait. It seems like it’s going to be the best strategy.