Bitcoin is gaining a lot of attention across the world. The latest value in terms of dollar remains at $17000, and it reached a three year high recently. Everyone from the Wall Street Journal to the Queen is talking about the rise in Bitcoin. The searches for Bitcoin reached their highest level this year on Google. Market experts feel that this trend is likely to continue for many more months if the governments do not interfere.
Paypal fueling growth in Bitcoin
It is interesting to note that Paypal has taken close to 70% of newly minted Bitcoins since it started offering cryptocurrency services a month ago. The remaining 30% of the newly minted Bitcoins are taken up by Square’s Cash App. These new players want to offer tough competition to the other players in the market as they are not able to handle the demand properly. In recent weeks, Coinbase has suffered a number of outages whenever there was a spike in demand.
Future of Bitcoin
According to market analysts, the future of Bitcoin looks very bright, and it can even head to $160000 if the bull run continues for many years. On the other hand, a bottom can be seen at $25000 levels for the long term.
However, this is one side of the analysis, as the other side looks scary. The US financial authorities have proposed a new rule that would lower the threshold for an international transfer to $250. In this way, they want to regulate the cryptocurrencies and seek more information about who is using the currencies and for what reasons. The Trump administration is not in favor of stopping down, and such proposals may get complete support from other agencies.
Even the new President-elect Joe Biden is not a huge fan of cryptocurrency, and he has appointed Janet Yellen as Treasury Secretary. Yellen has experience handling the Federal Reserve as Chairman, and he had earlier called Bitcoin as “anything but useful.” Considering these views from the people in power, analysts feel that the rise of Bitcoin can be halted by these forces.
The rise in prices of cryptocurrencies was in sync with the rest of the markets as the pandemic situation continued worldwide in 2020. If the new government in the US provides some stimulus to boost the markets, it can also have an impact on the investments coming into the crypto markets.