Bitcoin and the entire cryptocurrency market have been facing selling pressure in the past few days. Bitcoin price set a new record of $24,000 per coin, more than doubled in the last few months. It is generally agreed that the recent rally is initiated by institutional investors and big companies such as Paypal.
While some analysts believe Bitcoin is overbought and could face some corrections, the market generally shares a bullish sentiment on its long-term performance.
Garrick Hileman, head of research at Blockchain.com, shares his view that Bitcoin could hit $54,000 in 2021: “My expectation is that bitcoin will become a trillion-dollar asset as early as next year.” Hileman’s prediction is based on wider adoption led by institutional investors, with the number of people owning cryptocurrencies exceeding 100 million.
“It is easy for me to see bitcoin being at $50,000 next year,” famous hedge fund manager Michael Novogratz shares the sentiment, saying Bitcoin could outshine gold in the next few years.
Adoption and recognition from giant investors and Wall Street firms are the main driving force behind Bitcoin’s 2020 rally. Following such companies as Greyscale, Paypal and Square, U.K.-based Ruffer confirmed that it has purchased about £550 million worth of Bitcoin, amounting to 2.7% of the firm’s assets under management.
Bitcoin is one of the few things that benefit from the pandemic. Concerns for economic recession and inflation have driven many people towards Bitcoin, which is notable for its capped supply. Fed Chair Jerome Powell recently announced that the higher inflation is acceptable.
Another factor that could push Bitcoin higher is the liquidity crisis. It is noticed that the number of Bitcoin stored on exchanges has been in sharp decline since February. MicroStrategy just announced that it has purchased 30,000 Bitcoin. Now the leading Bitcoin whale has 70,000 Bitcoin in its AUM. With whales accelerating their pace to buy more Bitcoin, Chainalysis estimates that there are only 3.4 million currently liquid Bitcoin for investors.
Moreover, Coinbase applying for IPO will be a milestone for the whole industry going mainstream and regulated. Ten years after its coming into existence, Bitcoin is no longer a bubble pursued by geeks, but an asset with the potential to become a global currency.
So is a rally imminent in 2021? 2020 is a year of uncertainty, and we still don’t know what awaits in 2021. Uncertainties will pressure people to better allocate their funds to hedge risks, so the value of Bitcoin is expected to gain higher recognition in the future.
However, Bitcoin is an asset with high volatility, so traders should beware of huge price swings and manage their positions. But high volatility presents many opportunities to make money. With leverage trading, traders can long and short Bitcoin while gaining bigger exposure with their funds.
In Bexplus, you can invest in BTC, ETH, XRP, LOS, and EOS perpetual contracts with up to 100x leverage. To illustrate, you can use 0.1 BTC to open a short (predict it is going to drop) or long (predict it is going to rise) contract worthy of 10 BTC.
If we open the contract when Bitcoin is trading at $12,000 and close it when it drops to $11,000, the profit would be ($12,000 – $11,000) * 100 BTC/$11,000 *100% = 9.09 BTC, making the ROI 909%.
- Easy Registration with No KYC
Traders can register an account with only email and this process only takes a minute. No KYC protocol is carried out throughout trading so you don’t need to worry about information leakage.
- 100% Bonus to Help You Maximize Profit
A doubled margin helps you double your profits! Deposit 1 BTC and you will get 2 BTC. Up to 10 BTC is available in each deposit and you can withdraw all the profits generated by the bonus. Furthermore, bigger margins means that your positions are less likely to get liquidated. Your positions will be better secured in the highly volatile market.
- 10 BTC for Demo Account
Bexplus is known to be a beginner-friendly exchange: every user will get a demo account with 10 BTC upon registration. Users can explore futures trading with the demo account and learn to analyze the market.
- BTC Wallet: up to 30% Annualized Interest Without Any Risks
Bexplus users can gain profits not only from trading. Join the Bexplus wallet, you can earn up to 30% annualized interest without taking risks. With up to 30% annualized interest, it is no doubt one of the most profitable rates in the industry. While most lending platforms require traders to deposit at least 1 BTC, traders can make a deposit starting from 0.05 BTC on Bexplus.
- Trade Freely on Android & iOS
The top-ranking Bexplus app integrates all the necessary functions and tools (real-time charts, a variety of indicators, news alerts and etc.) while keeping a minimalist and intuitive interface. With the Bexplus app, you can manage your account anywhere and anytime you want. Furthermore, the 24/7 notification could keep you updated with big price movements, making it easier to secure your positions.
We can expect that the road to a new high will be a bumpy one. On Bexplus, you can earn profits no matter which way Bitcoin goes. If you hope to take advantage of these opportunities, don’t hesitate to join Bexplus now!