- Bitcoin’s price hit its all-time high today.
- The last time Bitcoin neared $ 20,000 per coin, the price plummeted severely a month later.
- Can we expect the same this time? Experts weigh in.
It’s December 2017: Daddy Yankee’s Slowly snaked its way into every ear hole on the planet, and Bitcoin hit its all-time high. Highs at just under $ 20,000– –before they crash a month later.
Now it’s almost December 2020, another global phenomenon has hit the planet, and now we’re back: Bitcoin passed its all-time high today. So … when to crash?
“I think it’s different this time,” said Simon Peters, an analyst at eToro Decrypt. “It’s not just the average person on the street buying Bitcoin. Larger institutions like pension funds and hedge funds, even public companies, are investing in Bitcoin, ”he said. Many see it as a “hedge against inflation,” said Peters.
This summer alone, MicroStrategy invested $ 450 million in Bitcoin. Grayscale, Square and PayPal snapped up Gajillions of bitcoin and prominent rich men like Paul Tudor Jones and Stanley Printmiller sang his praises.
In addition, Peters said, investors now look like they’re holding onto their Bitcoin: “We (eToro) have seen the number of people holding a Bitcoin position on eToro today 66% over December 2017, when the price last hit the all-time high, ”he said.
Peters said: “Bitcoin could continue to rise this year. If we keep the current surge we could see $ 25,000 by the end of the year. “Peters predicts that if it hits $ 20,000, the price could go down as sellers cash out their funds, but it will break through shortly thereafter.
“It’s still bitcoin,” said Eric Wall, chief investment officer of the Crypto Investment Fund Arcane Assets, softening Peter’s excitement. “It is inherently volatile and the market is still overcrowded with many traders thinking short term, in parallel with the very serious capital allocation that is going on right now,” he said Decrypt.
So what now? “As we approach the all-time high for the second time, those weak hands are now being shaken out. I think it’s likely that we will destroy it this time, ”he said.
Will it crash? “Of course. Bitcoin always crashes,” he said, “although the bottom will be much higher this time.”
“There are more big players with a fundamentally optimistic long-term view of Bitcoin,” he said.
Rachid Ajaja, CEO and founder of AllianceBlock, told Decrypt a similar story. He said that “another bust is definitely on the horizon.” He warned against speculation before telling us that he was “convinced” that Bitcoin would be a good alternative to gold and a hedge against inflation for emerging markets.
Said Wall: “We’re not going back to $ 3,000 now unless something crazy happens.” Like another wave of the coronavirus pandemic bringing the global economy to a standstill.
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The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.