Bitcoin has entered a positive feedback loop that will lead its price to a new ATH
November 2020 is just beginning, and we can look forward to an exceptional month for BTC just like October. At the beginning of the month, the price of Bitcoin was about $ 10.5 thousand, at the end of the month it was about $ 13.8 thousand, which is 32% more.
The question is not if, but when
Some people are surprised by this increase in the price of Bitcoin. In fact, this is not surprising, since it is only the result of the consolidation of fundamental indicators that we have been witnessing for several months.
It will soon be six months after the third halving of BTC, which occurred on may 11, 2020. History teaches us that this is when the bull run begins to take shape after the halving. This time, it seems, is not an exception.
The arrival of large companies allowed the price of the cue Ball to enter the cycle of positive feedback.
MicroStrategy, a company listed on the Nasdaq exchange, has made bitcoin Its primary Treasury reserve asset by adopting this strategy. Following the example of the CEO Michael J. Williams. Saylor, MicroStrategy made two large-scale purchases of BTC in August and September.
At the time of writing, MicroStrategy owns 38,250 BTC purchased for $ 425 million, including transaction fees. At the current price of the crypto asset, MicroStrategy’s investment is almost $ 530 million.
MicroStrategy has a brilliant strategy, and more and more companies will follow this approach in the future. Square also did the same in early October 2020. Bitcoin fever is starting right before our eyes, and nothing can stop it.
The announcement of PayPal’s entry into the world of cryptocurrencies from the beginning of 2021 was news that put Bitcoin in a positive feedback loop. This will push the price of the BTC to the new ATH.
This positive feedback will help to push the price of the king of cryptocurrencies to a new historical high in the coming months. No one can give you an exact answer. The only certainty is that a new ATH for the value of Bitcoin will be reached in the coming months. It’s only a matter of time.
All the positive announcement of Bitcoin increases attention to him. More and more people are realizing that it’s not going anywhere. Cryptocurrency is not a dangerous system designed for criminals, as some regulators claim, denigrating it. Using Bitcoin for illegal purposes is more difficult than using the dollar.
Demand for BTC has increased significantly
With increased attention, the demand for a crypto asset is growing. This encourages not only large companies, but also institutional and individual investors to buy Bitcoins. One of the proofs of this is the fact that a few weeks ago the Cue ball broke the mark of 100 million users.
Demand will grow, but the supply of new coins will eventually decrease irrevocably.
Demand is growing, but supply is still limited to 21 million units. In addition, the issuance of new crypto assets will continue to decline in the coming years in accordance with the monetary policy defined in the Bitcoin source code.
As the law of supply and demand states, this will lead to a sharp increase in cost.
Rising prices will lead to more volatility with adjustments from time to time, as we have seen in recent months. This volatility will cause the media to talk more and more about the favorite. In fact, we will return to the cycle of positive reviews.
This positive feedback will allow the price to rise sharply in the coming months. The goal to bring it closer to $ 100,000 by the end of 2021 remains as relevant as ever.