The recovery of the price of Bitcoin has raised a wave of enthusiasm among the investors who are afraid to stay out, FOMO. After more than two months of low volatility, the value of the main criptomoneda exceeds comfortably the 11K.
According to analysts cited in CriptoTendencia in past articles, the stagnation of the price of Bitcoin could bring a bullish move. After a period of low volatility, it is normal that the price will rise in an abrupt way.
At the time of writing, Bitcoin is trading at $ 11.600, that is to say, a 20% growth in a shorter period of 10 days. On the other hand, the portal Forbes shows data of a possible reach of $ 15,000 in the price of Bitcoin before he finishes this year 2020.
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The FOMO is present after increase in the price of Bitcoin
The FOMO, or Fear of missing out, is the feeling of the people who consider that they arrived late to the business and are afraid to stay out. Not buying Bitcoin when its price was low, and now see how the value of this criptomoneda it is shooting, you can bring more people to join the purchase of this digital currency.
Therefore, the massive purchases before a limited number of supply, could further accelerate the speed of increase in the price of Bitcoin. It should be taken into consideration that, since the middle of last month, the miners cut the sales of Bitcoin on the exchanges.
This could create a feeling of scarcity in a market with a growing number of buyers. To do this, we can sum the positive responses from the market to the announcements of the banks of united States of to save funds in cryptocurrencies.
To match all of these aspects, the price of Bitcoin and the enthusiasm of the market purchase, the main criptomoneda would be a step away from reaching the level of the year 2017, when it reached $20,000 per coin.
Enthusiasm in investing in criptos by Wall Street investors, could be one of the engines of the increase in the price of Bitcoin.
A cycle similar to that of 2019
According to the opinion of Joe Di Pasquale, CEO of BitBull Capital, quoted in Forbes, the current increase in the price of Bitcoin is similar to the cycle observed in the first 6 months of 2019, “when its value is increased by 189%”.
In addition, it asserts that the current growth in the value of the digital currency pioneer, you could have as a source the growing institutional interest. In the previous months, the interest on the part of investors of Wall Street, has been remarkable. The same can be said regarding the signatures of payment such as PayPal.
It must be remembered that, in the year 2017, while the price of Bitcoin reached a record high, just a year after it had already plummeted to about $ 3,000 per unit.
In this way, the meteoric rise of Bitcoin may have few precedents, as they are added to a number of factors. It should be borne in mind that it is still waiting for the rebound post Halving, which many analysts expect it will happen by the end of 2020 or early 2021.
The influence of the COVID-19 and the Halving
The cut to the 50% of the rewards to the miners by the network Blockchain of Bitcoin, it limited the number of supply of cryptocurrencies. The result in the increase of the price in this relationship, is about to occur.
On the other hand, the pandemic of Coronavirus, has pushed the government of the united States to print money on a massive scale. This increased the liquidity in Fiat currency and the limited number of digital coins circulating, are the cocktail perfect for the increase of the price of Bitcoin.
Added to this, the factors mentioned above, such as increased interest on the part of institutional investors, and the massification of electronic payments.
It should be noted that, with the restraints because of the pandemic, has raised the risk of people losing jobs. Because of this, many workers are betting on to save their savings in Bitcoin and mining. With this, the use of means of digital payment, could have a direct impact on the price of Bitcoin.
Data to be taken into consideration
The growth of the price of Bitcoin has enthused investors who are afraid to stay out of the business.The pandemic of COVID-19 has aroused the interest of the people in approaching to the digital media of payment.In the past 10 days, the price of Bitcoin has increased by 20%, after nearly three months of stalemate between 9 and 10 thousand USD per coin.At the time of writing, the price of Bitcoin sits at around $ 11.600 for currency, some analysts expect that for December, comes to $15,000.
Reliable sources
The information of this content has been taken from reliable sources which are detailed below.
1 – professional Management of content by the authors of CriptoTendencia.
2 – external Sources: Forbes.com.