The US technology stocks index Nadsaq 100 has reached new highs in the past few days – and has thus quickly offset the interim losses from the corona crisis. Bitcoin has long since digested the corona crash, but it is still a long way from its record high. For brave investors, however, this is exactly the opportunity.
Bitcoin has already caught up with around 140 percent of its crisis low in March, repeatedly targeting the $ 10,000 mark. A remarkable performance, and yet the price is still around 50 percent below the previous all-time high in December 2017 of around $ 20,000.
Crisis protection and “FOMO”
At this level, however, an exciting trend can be observed: Especially among institutional investors, interest seems to be picking up again noticeably. According to data from the financial service provider Fidelity, around a third of institutional investors worldwide are already active in the crypto market. The majority of them are involved in Bitcoin and on the spot market.
The crypto asset manager Grayscale alone bought around a third of all newly created bitcoins on behalf of its customers in Q1 – and the trend has continued to rise since then, as has the inflow of funds in recent months.
There are two possible explanations for this development: On the one hand, investors could buy bitcoin as a hedge against rising inflation in euros, dollars or other fiat currencies. As a “store of value” or “digital gold”, Bitcoin could fully exploit its strengths in such a scenario – just as in the case of political or social conflicts.
On the other hand, the fear seems to be great of missing the next strong upward movement. And the chances are good – especially with a view of the chart and technical indicators (keyword “halving”). “Fear of missing out”, FOMO for short, is particularly pronounced on the crypto market and has always provided an extra boost in the past.
Chance of Bitcoin Boom 2.0
Many small investors are still hesitating – the historical development of Bitcoin shows that once it gets started, things can happen very quickly. In specific cases, this means that if a sustainable leap above the $ 10,000 mark, which is technically and psychologically extremely important, there is a good chance of a walk towards $ 12,000 – and in the medium and long term also at an all-time high.
TheBitcoinNews.com – Bitcoin News source since 2012
Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. TheBitcoinNews.com holds several Cryptocurrencies, and this information does NOT constitute investment advice or an offer to invest.
Everything on this website can be seen as Advertisment and most comes from Press Releases, TheBitcoinNews.com is is not responsible for any of the content of or from external sites and feeds. Sponsored posts are always flagged as this, guest posts, guest articles and PRs are most time but NOT always flagged as this. Expert opinions and Price predictions are not supported by us and comes up from 3th part websites.
Advertise with us : Advertise