Bitcoin’s price had last closed at $13,000 in 2018 and after over two and a half years later, it closed above the same price level for the first time last Saturday. Most asset managers and analysts believe that bitcoin could cross $14,000 before the year-end.
According to Forbes, the bitcoin price rallied 20 percent through October, to touch year-to-date highs of $13,230/bitcoin. Year to date, the cryptocurrency has gained over 80 percent.
Last week, the news of PayPal allowing its customers to buy and sell certain cryptocurrencies, along with recent investments in bitcoin by Square and MicroStrategy, has given bitcoin a strong tailwind, said CoinDesk. The website closely tracking cryptocurrency also said JPMorgan analysts feel bitcoin has “considerable upside potential.”
CoinTelegrah in its article said data from BTC.com and Blockchain indicate difficulty and hash rate in the short-term. Network fundamentals are showing signs of cooling off after recent growth.
Constantin Kogan, managing director at Wave Financial, said in an e-mail to Forbes, “2020 is fast becoming the year of crypto acceptance and we see 2021 as the year of mainstream adoption. All of this is bullish for the price of bitcoin and it’s safe to assume that bitcoin will remain a strong bullish trend. We believe a year-end price beyond $14,000 is easily achievable as the market hasn’t fully absorbed all the positive news.”
Ahead of PayPal’s announcement, bitcoin had already begun to catch the pace of a rally on the back of strong remarks made by US Federal Reserve’s chairman Jerome Powell on digital currency and renewed hopes of a stimulus package.
Simon Peters, an analyst at brokerage eToro said to Forbes that investors should look to $14,000 as the next target, a high not seen since June 2019.
Meanwhile, the well-known Bloomberg Intelligence Senior Commodity Strategist Mike McGlone in an e-mail to CoinDesk said bitcoin’s “fundamental and technical indicators remain positive.”