The equity markets have been having a harder time in recent days, but Bitcoin has so far been immune to the downtrend, and the monthly closing price for BTC is eagerly awaited.
Bitcoin could not avoid a crash in March 2019. You went swimming with the stock markets. As a result, the nimbus seemed to be broken, because many analysts propagated BTC as an asset that had little or no correlation to other markets.
But precisely that faction sees itself confirmed in the current development. Because while the stock markets are slowly running out of breath, Bitcoin is only really turning up. The BTC rate is currently at around $ 13,400 and is thus much more safely above the $ 13,000 mark, which has proven to be an important limit in recent days.
A look at the monthly chart is even more exciting, because it reveals that Bitcoin is on the way to starting a long-term trend for the coming years. Because the annual high in 2019 was just above 13,800 US dollars.
2020 US elections are the factor
This year there was hardly any good news from an economic point of view. The COVID-19 pandemic spread globally, taking a stranglehold not only on people’s health, but also on the global economy.
The social unrest in the USA, which originated in the death of George Floyd, did the rest. But the year is not over yet and the US elections will still play a decisive role in the development of the markets. This applies to stocks, but also to cryptocurrencies.
The incumbent US President Donald Trump is not considered a friend of Bitcoin. Trump made this more than clear in 2019. With Ripple, a large company appeared a few days ago, which criticized Trump’s political course and holds out the prospect that another Trump election victory would be detrimental to the industry. Here one has a particular eye on the regulatory framework, which could be friendlier under a possible aegis of Joe Biden.
PayPal relies on Bitcoin
Despite the rather unfortunate development of 2020, there is a ray of hope for Bitcoin, because PayPal is daring the advance and starts trading in the USA. This means that various brokers and crypto exchanges around the world should look around the world.
Because PayPal can suddenly develop absolute dominance in the market in this sector. They have a good 350 million customers in their luggage worldwide. A number that no single crypto exchange will probably ever reach. In a figurative sense, it is expected that this will open the floodgates and Bitcoin will reach the masses.
If this is the case, in addition to the shortage caused by the Bitcoin halving, a large and fresh amount of money would also be brought to the market by new investors.
Companies rely on BTC
But not only small investors are in demand, because recently companies have also taken money into their hands and prefer to put it in Bitcoin than expose it to the risk of devaluation in the form of cash reserves. Probably the most media-effective example is MicroStrategy, whose CEO has come out as an outspoken advocate of Bitcoin.
But Michael Saylor is not the only one making headlines. Square also followed suit, but this should be understood as a duty, since the business model is ultimately based on Bitcoin. This is the first time that we can discuss what was previously considered impossible. Because if the plan works, other companies could follow suit.
This confirms the narrative of “digital gold” again, because it is difficult to deny that Bitcoin is hard money. All that was needed was the public acceptance of respected representatives that a digital good could also fulfill this role. This long overdue change of heart now seems to have finally occurred and to raise Bitcoin to a new level in social terms.