2020 was surely the year Bitcoin was waiting for
With so many investors of all scales buying into the world’s largest digital currency it was exactly what Bitcoin needed to reach today’s future price of $29,185, putting Bitcoin up 300% on the year.
At the start of the Covid-19 pandemic reaching countries around the world in March 2020, Bitcoin fell from $10,000 to this year’s lows at around $4,000. This occurred as the S&P 500, Nasdaq Composite, and the Dow all followed this same trend of dropping harshly in March, recovering around July, and reaching record heights in December. At the very least this illustrated how Bitcoin was still in many ways tied to U.S. equities as this year comes to a close this, I believe is the most important lesson we should have learned.
Now with one more day left in 2020, it comes as no surprise that Bitcoin is at its all-time high or that equities are at record highs as well. I believe that Bitcoin can and will continue to rise as long as equities remain in this uptrend. For that reason, I believe it is not so much how high will bitcoin go, but rather how much longer can equities continue to rise that is the most prudent question.
The fact that any of these markets other than Bitcoin which thrives off of online purchases would do so well this year comes as a surprise to me. The only explanation for this is the massive fiscal stimulus enacted by the government on two occasions this year. The election of our 46th president Joe Biden gives reason to believe that there may be more help coming over the next year and as such the free money along with low-interest rates already all but guarantee that this trend is likely to continue into 2021. As such I cannot give you an accurate number for how high Bitcoin will go in 2021 but I can safely assume that its rally is far from over.
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