Currently it is considered the right time to invest in virtual currencies such as bitcoin. The reason is, Bitcoin is an investment product that is not affected by government policies or global policies such as when the corona directly occurred.
which affects the price of bitcoin is only the supply and demand of the crypto asset itself, where the supply is very limited. This is in line with the analysis from the latest Bloomberg report which states that Bitcoin has started to enter a bullish phase like what happened in 2017.
Nowadays, bitcoin's rise tends to make much more sense than in previous years. The Bitcoin trading market is much more mature. Currently, there are many futures trading markets that have started internationally so that the movements are not as violent as before.
Bitcoin is truly transforming into Digital Gold and it is evident in times of recession, like today's corona. Only Bitcoin and Gold-based assets are able to survive compared to other assets that have fallen dramatically and require a bailout from the government.
The increase in the price of Bitcoin is expected due to the entry of institutional investors into the cryptocurrency market. Square and PayPal, two payment fintech's have purchased Bitcoin at the request of their customers.
For Off the Chain Capital hedge fund investment chief Brian Estes, the price increase from US $ 18,000 to US $ 100,000 in a year is not a difficult thing to happen to Bitcoin.
"I've seen bitcoin go up 10X, 20X, 30X in a year. So going up 5X is not a big problem," said Brian Estes as quoted by Reuters.
Brian Estes predicts Bitcoin could reach US $ 100,000 to US $ 288,000 by the end of 2021, using the stock-to-flow ratio method that measures the scarcity of commodities like gold. That model, he said, has a 94% correlation with the Bitcoin price.
Citi technical analyst Tom Fitzpatrick said in a note last week that bitcoin could rise to US $ 318,000 by the end of next year, in a report to institutional clients.
