The crypto bull market is heating up again and Bitcoin is leading the way. We tested $19,000 last Friday approaching the all-time high of nearly $20,000. The last time we saw prices like this was about 3 years ago in December of 2017.
Since 2017 Bitcoin has been introduced consistently to the broader investment world. Investors are getting more comfortable with it. Now, all the necessary infrastructure to support big buyers is in place now. Fidelity and other huge players have serious operations ready to handle institutional money. For this reason and many more reasons we could see new highs for Bitcoin in the very near future.
Right now, we experience a very bullish environment for Bitcoin. We see institutional investors entering the market who are far more likely to buy and hold crypto long term. This is very different from the retail traders who were driving the bull market back in 2017 and who often buy quick and sell quick, driving market volatility. Having these institutional investors involved brings Bitcoin more stability.
This time we’re seeing big money get involved. If more and more institutional investors and big players decide wanting to own a small share of Bitcoin in their portfolio, there is going to be a huge demand.
For a long time, Bitcoin was seen as too small of a market for big players to even get involved. They would have moved the price too much. But as price and liquidity rise, it actually makes it possible for more institutions to get involved.
Further, we also have some great fundamental factors working for Bitcoin price appreciations:
1. The FED printing money like there is no tomorrow
2. No yields on saving accounts
3. $17 trillion of government bonds with negative yields
4. An increasingly digital economy
Bitcoin’s outlook is super bullish. We see a powerful adoption cycle, creating more and more long-term adopters. A lot of these new buyers are going to hold on for the long run. This should definitely support the price of Bitcoin.
Sven Franssen