Bitcoin has finally done it. After months of waiting, the world’s number one cryptocurrency by market cap has surged past the $13,000 line. The currency has been making its way towards this figure for the past several days following an announcement by PayPal that users can now utilize crypto to purchase goods and services, and the news has had positive impacts on cryptocurrency everywhere.
Bitcoin Is Again Reaching the Top
Bitcoin is now trading for its highest position in over a year, and many analysts are wondering if $14,000 will soon be next.
The trials and tribulations of bitcoin have been very strange this year, to say the least. The currency initially started 2020 in the $7,000 range, but later fell to around $6,900 on the second day of the year. From there, however, the currency engaged in a series of small rises that would eventually take it into five-figure territory by the time February arrived.
Bitcoin was then trading for $10,000, but following news that the coronavirus pandemic was striking America and its allies from all corners, the asset fell into the high $3,000 range by the following month, thereby losing roughly $7,000 from its previous monthly total.
But this drop only lasted about a month or so. By the end of April, bitcoin had shot up into the $8,000 range, and by the time May arrived, the currency had added another $1,000 its price. Here, it remained for the next two months, eventually hitting $10K again in July, and it remained in this range for some time, eventually hitting $12,000 in August.
September was particularly bearish for the asset, as the currency ultimately fell back towards the low $10,000 range from its then high of $12,400. Many analysts commented that September was historically a bad month for bitcoin and that users shouldn’t be too concerned. Apparently, they were right. Now, a month later, bitcoin is at its highest peak since summer of 2019, and traders couldn’t be more excited.
Is $14K Imminent?
Constantin Kogan – managing director at digital asset manager Wave Financial – explained in a recent interview:
2020 is fast becoming the year of crypto acceptance and we see 2021 as the year of mainstream adoption. All of this is bullish for the price of bitcoin and it’s safe to assume that bitcoin will remain in a strong bullish trend. We believe a year-end price beyond $14,000 is easily achievable as the market hasn’t fully absorbed all of the positive news.
At this stage, Constantin is right. $14,000 by the end of the year doesn’t seem out of the question considering the currency has literally added more than $2,000 to its price in less than two months. Should the currency continue this level of momentum, there is no reason why we cannot say hello to 2021 with a $14,000 bitcoin in our pockets.