Bitcoin Breaks $28K — Here’s What Happens Next
By David - December 01, 2020
After 2017’s ATH, Bitcoin has gone through the most volatile path to get its new high of $28,000 in 2020.
While the ATH difference of 20k and 28k isn’t too significant, the 28k ATH is generating even more interest thanks to more engagement, retail accessibility, and institutional funds.
So, with more interest, here are some things to expect soon:
Even More Volatility
All it takes is for another strong price trend and the whole world will be rushing in again. This is due to the amount of $50K and $100K price predictions that have been said for years.
So, expect Bitcoin to move up and down by the thousands each day.
Also, if you’re a trader, remember to be responsible as this volatility can work for you or against you. Don’t over-leverage and keep your position sizes consistent.
In 2017, we saw many Cryptos go from dust to dollars in days. The likelihood of this happening again is very possible but it’s still unclear how big or small the pumps will be.
Already, we are seeing some coins such as Stellar Lumens and Ripple doing 100%+ in a month, and Litecoin being up by 50% in a week.
There’s no indication if those are the type of percentages to expect now. However, if Bitcoin does adhere to the S2F ratio and high price predictions, it’s safe to expect the 1,000% and 10,000% gains we saw in 2017.
More Projects, Coins, and Adoption
The bitcoin price strongly correlates with the rate of engagement in the field. Google Trends is a direct indicator of this:
This all contributes to one thing — volume.
When there’s a lot of volume, it incentivizes others to add value to crypto in the form of projects, coins, and content.
Volume also creates the demand for adoption initiatives. This is why PayPal and Cash App are allowing its users to buy Bitcoin.
Possibly More Regulation
As more institutional investors enter and bitcoin demand increases, cryptocurrencies may become integrated into our daily lives — use it as payments for bills, rent, in-store shopping, etc.
If this happens, ít’s almost inevitable for more regulation to be present.
As the purpose of cryptocurrency is decentralization, it will be interesting to see if further regulation does more harm than good.
For example, the European Union has expressed wanting to regulate and ban stablecoins as it poses a threat to centralized digital bank currencies.
Goldbugs Finally Take The Hint
Gold investors kept turning a blind eye to the progress cryptos have been making throughout the years. At the root of it is the claim that bitcoin has no “intrinsic value”.
While this may be true, it’s not stopping the likes of JP Morgan and MicroStrategy from pouring in billions into crypto.
Gold has always been viewed as a safe haven, but we’re now living in a world that’s heavily influenced by digitization. A more digital-focused world gives Bitcoin more perceived value, and the generations to come may start to lose interest in gold.
Bitcoin Just Keeps Going Up
While it is likely for Bitcoin to immediately come down after reaching new highs, it may form a cup and handle pattern, and then keep going up.
If Bitcoin does plan to keep going up, you happen to be involved in the initial phases of its exponential growth.
The best thing you can do right now is to position yourself to take advantage of its growth.
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