So recently, Bitcoin has undergone a parabolic move soaring past $15,000 hitting its highest level since January of 2018 all fueled by the cocktail a weak US Dollar and the uncertainty over the US Elections/Selections ;), Economic and political outlook. At least that’s the narrative we can see on the surface, but we need to look way deeper to get an idea and understanding on where Bitcoin and other cryptos is going to be in 2021 and beyond.
Why is Bitcoin so HOT Right NOW?
It looks like Bitcoin might get parabolic in 2021 as we look in its history, We have seen parabolic rises in 2013 & 2017. We might be witnessing previous patterns playing out again.We can be certain new all time highs are the next potential iteration for Bitcoin favorable macroeconomics akin to those supporting gold right now are providing the justification to see Bitcoin rise to $20,000 or higher. Where we have seen previous resistance levels were at $10,000, We may see a transition of Bitcoin reaching the levels of $20,000 in 2021 and beyond. The questions to me and i would pose to other Bitcoin/Crypto OG’s is why is Bitcoin considering $20,000? Why is it not likely to stop there this time? Well, we will need to look at the retail side or the local level to expand our experience.
Why is Bitcoin is not STOPPING at $20,000?
At the moment, we are not seeing any FOMO in the retail/local level, which is contrary to what we saw in 2017 bull run. If you Google search trends seems to indicate that the retail traders have yet to even start to consider as an investment or part of their asset diversification plans in 2021.
So this leads us to our 1st big reason for Bitcoin’s rise, potentially the most bullish catalyst among our reasons today. The fact that retail traders and investors are not yet involved make 2020 a different market compared to the market we saw in 2017. So, who is driving Bitcoin’s rise in 2020?
Well, what we found is that the weak hand retail speculators have been replaced by companies like Micro Strategy & Square who are not going to sell anytime soon. This is effect, makes Bitcoin floor price higher than it was in 2017. We have seen Square has invested 1% of their company’s asset into Bitcoin, which is the total of $50 million. In September, we saw Micro Strategy bought $450 million worth of Bitcoin and has been doing really for them.
Last Week we saw Square just report that their quarterly earnings and their stock price took of after it was announced that they had beat expectations and generated $1.6 Billion in revenue from their Bitcoin trading.Meanwhile, there is great excitement to see Venmo and PayPal rollout their Bitcoin purchasing in 2021.
Personally, I think this is a major catalyst and there is going to be a blockchain craze that will be coming soon. The fact that people can now buy it on Cash app or Venmo or PayPal. Its only going to accentuate and exacerbate the bull run. This event will make 2017 look like a joke. In 2017, people had to sign up to Coinbase, Kraken,Gemini etc and link their bank accounts to acquire cryptos. These websites weren’t widely known at that time and it probably involved people to do a Google search like “How to buy Bitcoin?” or some cases asking little kids or even their grandchildren to help them buy Bitcoin or other Alt coins.
In 2021, people are able to open up their smartphones and access their Venmo or CashApp etc to be able to purchase their Bitcoin’s immediately. So, needless to say, FOMO will be the engine of growth for Bitcoin and it will be much more powerful than it was in 2017 because there is much more access , much more depth, you have both retail and institutional interests and importantly, this is only taken into account what exists already inside the crypto space or i would like to word it as the Cryptocosm.
When we look outside of the crypto space or the Cryptocosm, the argument for Bitcoin as an investment only gets STRONGER.
Looking Outside Crypto
Another way to look into why Bitcoin price has been soaring lately can be related to the US Elections and the uncertainty around it. It was the case that Bitcoin made some substantial gains last week as the elections were not quite clear yet.
But i want to make it clear to everyone out there and make the CASE that the Crypto space doesn’t really CARE who won the US elections. The Crypto Market doesn’t care who is in the White House, Who is in the Senate, who is in Congress and other statist machinations and titles. But Why the Crypto markets DON’T CARE?
Well, the truth is both The Blues and The Reds have sworn to print and spend trillions of dollars and will continue to do so in an attempt to jump start a sickly economy. Looking beyond the elections, it is abundantly clear that there is mismanagement of the US economy is not going to change regardless, if Trump or Joe Biden were in the White House. This is all we have heard and seen with our own eyes on whats happening in Washington DC.
- Deficits Doesn’t Matter
- Spending Money Doesn’t Matter
- Printing reckless amounts of dollars into doesn’t bring about inflation.
I”m hopeful and praying that you as a beautiful individual don’t believe the above. Unfortunately, there are a lot of people who believe in this economic and financial craziness.
The flagrant money printing is not the single biggest cause of all the world’s ills, and the central banks are the root of all evil, maybe sometime 😉
I do believe that rampant and runaway money printing is a symptom of a financial system on the edge of collapse. So, no matter how bitterly contested the election was, its going to take a lot more than a new president to truly solve anything regarding the economy right now and I’m positively sure that the crypto markets understands this way too well. Those who are investing in the crypto markets and betting against the legacy systems understand that the more chaotic the legacy legal,political,economical and financial systems of the United States becomes, the more crypto assets thrive, The more the US government officials begin to crackdown of crypto trading, the more they push crypto/blockchain innovation off shore and make global competitors like China & Russia look good in comparison. Most importantly,
The more corrupt the currency is, the more likely is that people all over the world will pull funds out of the legacy fiat money system and into alternative asset classes like cryptocurrencies , driving them higher and higher.
So whatever you do, don’t think that there will be a return to normalcy or the “normal life” after the election. Regardless of who would have won.
Quiet times do not lie ahead as a Revolution is about to erupt an no power is going to stop it.
So what do you think ? Where do you think Bitcoin is going to be going in 2021? Do you think we will see $20,000 next year or even $100,000 by next year?
If you are looking to make the most out of Bitcoin’s hopeful upward trend, I would love for you to keep up with the FINfluential podcast as well as the commencement of the Cryptocosm, where you will get overall view of Blockchain and cryptocurrencies. At the Cryptocosm, there is a 10 STEP Beginners Buyers Guide in guiding you to safely,confidently and reliably buy your first bitcoin or other great alt coins.