Virtual currency is now a trading platform rather than an acquisition, and it will remain so for a while. The price might and certainly would go somewhere, but it is pretty doubtful to go any higher than the recent peak, and even if it does, it is highly improbable to sustain or exceed a range of $40,000-$50,000.

Bitcoin won’t see another big peak till the next halving, which is set for 2024, and then we’ll be in a whole new environment.

There is a proviso: if the recession is out of control, price forecasts are meaningless. A photo is worth a thousand words, and any level of inflation will skew any forecast unless you want to deal with the complexities and murkiness of interest payment.

Why Investing In Bitcoin?

Believers would argue that this is what bitcoin seems to be doing; it has now risen to $200,000 in value. Unfortunately, it isn’t in the cards. It’s worth remembering that the US M1 (cash) market is just $7 trillion, down from $4 trillion until Covid. Bitcoin will not be able to compete on that level in the coming months, but $200,000 per coin is a long way off on any reasonable timeframe.

A huge migration of stakeholders from big enterprises such as retirement funds, university payment details, and institutional investors is one explanation for the dramatic price increase. That wasn’t the case during the previous market crash in 2017 when bitcoin’s price soared nearly 20-fold to nearly US$20,000 before crashing to the low US$3,000s a year later.

Individual investment banks led the cryptocurrency ecosystem in 2017, with many drawn to bitcoin’s volatility and the fact that it operated outside of the world’s economic structure. The 2017 stock market exhibited all of the hallmarks of a classic stock market bubble, with consumers investing out of “fear of losing out.”

Is Bitcoin Becoming Mainstream?

In recent moments, big names like billionaire tycoon Paul Tudor Jones and financial titan MassMutual have put their money where their mouths are, and even former skeptics like JP Morgan are now predicting a promising future for bitcoin. This all adds to the cryptocurrency’s credibility and shows that it is becoming more mainstream.

Just a few major consumer-facing payment companies have even backed Bitcoin. Customers will now purchase, store, and sell bitcoin straight from their PayPal accounts. Square, a competitor in digital payments, announced in November that many of its Cash App customers are purchasing digital currencies and that they are purchasing more overall than it was before. The number of merchants who welcome bitcoin as payment is increasing.


Bitcoin has since matured significantly from its early days as a means of purchasing drugs on the dark web’s Silk Road. Digital wallets, passwords, and platforms for Bitcoin are now much easier to find, and there is a lot of accurate information available than ever.

The BitQZ app uses sentiment-driven investing technology to enable users to wager on volatile celebrity opinions. It is the first exchange mechanism to sell the fluctuations associated with Elon Musk’s Bitcoin Tweets. Elon Musk’s opinions have a major effect on cryptocurrency liquidity.

Bitcoin Is Considered Measure Of Wealth

Hedge funds along with bitcoin futures trading, as well as blockchain-related funds, also made it possible for investors who were previously afraid of uncertainty to participate. Bitcoin futures enable investors to bet on the cryptocurrency declining in value by “short selling” on it.

Aside from all of this media excitement, COVID-19‘s destruction has resulted in massive stimulus programs from policymakers across the world, as well as many financial institutions printing more currency. Unemployment could rise as a result, reducing people’s buying power.

Faced with this challenge, assets such as bitcoin are being seen as a measure of wealth. The supply of new coins is also slowing because the payout bitcoin miners get for approving bitcoin transactions is approximately halved every four years. This vulnerability is equivalent to precious metals depletion.

Final Thought

As a result, it seems that the latest bitcoin price increase has more significance than in 2017. However, not everyone agrees. Bitcoin is in a traditional, follow-the-herd trap and traders don’t grasp how it operates. In the meantime, market uncertainty remains a big problem and will continue to concern some investment firms.

BTC has “skin in the game,” and these figures could be too ambitious. Regardless of where the price heads from here, the fate of the largest blockchain would undoubtedly become one of the year’s greatest financial headlines.

Image Source: BigStockPhoto.com (Licensed)