Bitcoin, the granddaddy of cryptocurrencies, has soared 14% on Thursday, with the Bitcoin price just a few hundred dollars away from the key $40,000 level.
After rising almost 50% in the last two weeks of 2020, Bitcoin closed the year with a 305% return. Now, with each record-breaking high there appears to be a real FOMO (Fear Of Missing Out) on Bitcoin. So, is it too late to buy Bitcoin? Hell, no, and here’s why.
Very Different Scenario to the 2017 Bitcoin Bull Run
When the Bitcoin price surged to an all-time high of $20,000 in December 2017 and then subsequently crashed, it was on a very different playing field to that of 2020/21. Since Bitcoin crashed three years ago, a lot has happened in the crypto world
First, crypto is now institutionalized. Big financial institutions like Grayscale and Rothschild have invested hundreds of millions of dollars into Bitcoin over the last 12 months.
Investors of every size have been attracted to Bitcoin’s inflation-hedging qualities and the potential it offers for fast and high returns. Indeed, when you compare the Bitcoin return for 2020 – 305% to that of Gold for 2020 – 25% and the S&P 500 Index for 2020 – 16% you can see why investing in Bitcoin is being carried out by not just private individuals but also by some of the largest hedge funds and financial institutions in the world.
Another key difference to the current surge than that of 2017, is adoption. When payments giant – PayPal announced they would start accepting Bitcoin in October 2020, Bitcoin was given a credibility boost like no other. Its widespread adoption within the payments industry and general use have grown considerably since 2017 and it is fair to say Bitcoin and cryptocurrency, in general, is far more credible now than ever before.
The 2020/21 Bull Run is very different to before because Bitcoin through adoption and institutional investment now has substance.
The Price Will Go Up More
There are many top crypto names that are predicting that this is just the tip of the iceberg and the Bitcoin price will only go up even more.
One senior analyst at Citibank has predicted the cost of a bitcoin could even surpass £230,000 by December 2021.
Meanwhile, Tyler Winklevoss estimated on New Years Day that a single bitcoin would cost £360,000 within the decade.
Borys Pikalov, Co-founder of Stobox.io, said to Finance Magnates:
“In the long-term, there is still potential for the total increase in the market cap as BTC will be further recognized as a store of value by more conservative institutions and even corporations.”
So, do you want to be the person regretting not buying at $40,000? Only time will tell, but all the signs are that if you don’t buy Bitcoin at $40k, you could be that person that regrets it.
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