on the crypto
All over the world, there is talk of nothing but bitcoin in various financial circles, so much so that the cryptocurrency market has seen a huge upward shift in recent months.
New ceiling by the end of the year?
The price of the main digital asset is continuously rising and just a few days ago, it reached a new all-time high with a quotation of over 60 thousand dollars. Now, analysts and investors are trying to understand how the currency will move in the coming months.
According to Diginex, Bitcoin is set to reach a maximum price of $ 175 by the end of 2021. This topic was discussed by the company's CEO, Richard Byworth in an interview with Bloomberg a few days ago. Diginex, a Singapore-based company, is a financial services firm for digital assets.
Institutional adoption
According to the CEO himself, one of the main factors currently driving the price of BTC upwards is the growing attention from institutional investors.
A few years ago, most companies wouldn't have risked investing their money in cryptocurrencies like Bitcoin. Today, companies like MicroStrategy, Square, and Tesla are pledging billions of dollars to invest in cryptocurrencies.
Bitcoin as a reserve asset
Furthermore, Bitcoin appears to be seriously challenging gold as the next asset to become the world's leading reserve asset, especially in light of governments' continued devaluation of the currency.
As such, the demand for Bitcoin is increasing day by day and, with it, its price as well. In fact, some analysts have predicted that in the next few years, Bitcoin will have grabbed a sizable chunk of gold's total market capitalization, something that will further affect its price by making it reach peaks that were unthinkable a few months ago. Bitcoin already represents a trillion dollar market.
Only the Fed can stop its success, but it won't
Going on, Byworth said the only body currently capable of stopping Bitcoin's inevitable long-term success is the federal government, but that would mean risking an economic downturn with catastrophic repercussions.
He is confident the Fed wouldn't risk doing so much damage just to stop BTC. At this point, it is inevitable to think that the currency will continue to grow throughout the rest of the year.
The data confirms that more and more investors are starting to invest in cryptocurrencies rather than gold. And if attention should also reach the general public, large companies could soon accept bitcoin as a payment method and it will be a revolution.
Those who have had the constancy to keep their bitcoins in the digital wallet could find a considerable advantage if its value were to skyrocket next year. We will find out only by living.
