Since the end of last year, cryptocurrencies have gained strong momentum thanks to Bitcoin, which has been continuously reaching new highs. The most popular cryptocurrency went beyond the significant level of $20,000 in December 2020 and has been forming many new ATHs (all-time high) since then.
Last weekend, the BTC/USD reached a new record at $61,243 according to CoinMarketCap data, which is an increase of more than 206% since the $20,000 mark. For many analysts, the price of the first cryptocurrency will keep rising, thanks to increasing interest from institutional investors, from JP Morgan and Goldman Sachs to Tesla, PayPal, Square, and MicroStrategy – not to forget significant financial advisors, family offices, insurance companies and asset managers. More and more retail traders are also investing in Bitcoin, as the coin is offering many opportunities for quick profits.
If you’re an active Bitcoin trader, you can use regulated and popular CFD brokers like Easymarkets to take advantage of Bitcoin’s volatility. One of the biggest advantages of using CFDs to trade cryptocurrencies is that you can profit from rising as well as falling markets. Not to mention that with CFD on Bitcoin, you will not own any BTC tokens, you will simply profit from the price difference between the opening and the closing of a CFD contract on Bitcoin.
Whether you believe the Bitcoin price will keep rising or not in the future, one thing is for sure – it’s attracting more and more attention. This situation is likely to support wider adoption, which will in turn support the token price. Institutions are already showing growing interest in using or investing in Bitcoin, which has supported the price of the coin in recent months – the Financial Times even declared 2020: the year Bitcoin went institutional.
As some skeptical people still believe that Bitcoin’s price might soon collapse – such as after the surge in 2017 – many analysts highlight that the situation is very different this time, as BTC has entered the financial and institutional mainstream. In 2017, retail investors were mostly driving the markets without any real interest from institutional investors and big companies. Today, everything is different and institutional interest and investments are a game-changing move for the cryptocurrency market, as these investors are the ones that can truly propel the markets.
For Dan Ives, managing director of equity research at Wedbush Securities, the Bitcoin hype isn’t going to fade any time soon, as quoted in this article of The Washington Post – “From PayPal and Square, to the likes of Nvidia, Tesla, IBM, Visa, Mastercard and many other companies across verticals, we believe the trend of transactions, bitcoin investments, and blockchain driven initiatives could surge over the coming years as this bitcoin mania is not a fad in our opinion, but rather the start of a new age on the digital currency front”.
While price movements can be rough in the cryptocurrency market, price corrections on Bitcoin should be expected, as they are necessary and healthy for the market to keep growing over the longer term, so be prepared for a bumpy ride!