The continuous rise in the price and value of bitcoin has prompted an optimistic outlook in the future of the cryptocurrency. Bitcoin investors are anticipating the $20,000 mark, hopes are high, and people are regularly watching the market charts.
There is no affirmation as to bitcoin reaching that high, but market indicators are not looking bad either. Analysts think that it just might happen. Cryptocurrency experts have pointed out five possible factors that could influence the price of bitcoin in the near future.
Provision of Vaccine and Proposed Stimulus Package
Talks are on-going for a possible coronavirus stimulus package for people in the United States. Although this proposed package will not be for the general citizenry but selected sectors of the American society which can influence the economy and help strengthen the dollar.
Also, the roll-out of coronavirus vaccines would build confidence, thereby enhancing economic activities. Experts, however, believe that a major boost in the U.S dollar poses a concern for bitcoin.
Bitcoin Prices Bounce back
After what seemed like a dip in prices of BTC earlier last week, prices are beginning to climb up again, and since the weekend, bitcoin has rebounded from about $18,000 to highs of around $19,400. Investors are feeling confident again and hoping to get through to the $20,000 mark after a failed attempt to force through.
Potential Gap Looming
Analysts project that the recent rebound has opened the gateway for a possible gap in bitcoin, they envisage a gap of about $1000.
Institutional Adoption Signifies Bright Future
The cryptocurrency community went agog after the announcement from top insurer MassMutual. They acquired cryptocurrency worth $100 million. Analysts explained that this move was going to boost the confidence of investors and intending investors who still harbour some level of doubt on the future of bitcoin. Having institutions and corporate bodies invest in bitcoin is what the industry needs for global adoption.
