Since our mid-week analysis of Bitcoin and alongside it, Ethereum, both cryptocurrencies have grown in price. Substantially grown in price.
Both currencies have proven resilient in the face of additional selling pressure and have even reached new heights. Bitcoin throughout the week surpassed the $40,000 mark multiple times and as of writing, is holding firm at $40,586.
Ethereum additionally has also increased its price and as of writing to $1327 almost reaching its 2018 all-time high of $1400.
So, what is the take away from this? It could be argued that Bitcoin and Ethereum to some degree are the new hedges against an unstable market, a market that is decreasing in value as countries around the world print more “fiat” currencies, creating inflation and thereby decreasing their overall worth.
Previously, the main hedge against traditional market currencies were precious metals such as Gold, but it seems that interests have shifted. It would appear that Bitcoin is the hot commodity on the block for both institutional investors, larger investment firms and even the average consumer.
It would appear that with Bitcoin making headlines with its continuous growth, that more and more of the public now know its existence, are better educated in the market of cryptocurrencies and would therefore look to invest in the market.
As we take a look at Bitcoin’s current price against its 2018 high of $22,000, then compare its public image from 2018 against today, its obvious that back in 2018 Bitcoin was a relative unknown to most of the public. It was seen as risky, as something that no one understood. But now, in 2020 and in 2021, Bitcoin has become far more mainstream. A larger proportion of the public know about it, have some experience with cryptocurrencies and it only seems logical that Bitcoin could grow to such levels with seemingly relative ease.
Where do we see Bitcoin and Ethereum going in the short term? We at Dark would suggest that it’s difficult to deny the growth that we are seeing right now. This bull run on cryptocurrencies feel far from over, especially within 2021.
It wouldn’t be difficult to image Bitcoin hitting $50,000 or even higher this year, potentially reaching a price of $100,000 at its top.
However, we would always advise against investing too much into a singular asset. Bitcoin and Ethereum in our opinion should just be one part of a varied and diverse portfolio.