With a whopping 80% gain in value, bitcoin's performance in 2020 has outperformed both of Wall Street's most valuable indexes, the S&P 500 and Nasdaq 100.
But it didn't stop there - investors first most popular alternative to stocks is gold, and Bitcoin beat that too. Market analysis expert Willy Woo tweeted "Gold's having its best year since 2010. This how it's doing against BTC.." along with a chart showing BTC ahead of gold by a large margin.
Since taking a steep fall triggered by the start of the pandemic, the price of bitcoin has been climbing steadily throughout the year. This week breaking $ 13,000 for the first time since mid 2019.
Two major factors at play...
First, analysis is showing more BTC being stored offline and out of exchanges - a symptom of bullish behavior and conformation of a large number of 'long term investors'.
Second, major companies jumping in - this plays out both when we see large investment firms spending millions, and companies like PayPal announcing their support. Funds pouring in while the technology becomes more accessible to the public will always be a winning combo.
What's Next?
I'm expecting a small pullback after a lot of excited buying, but nothing to worry about (i'm HODLing, but you do what you want).
Then we're going to need something big to push through that $14,000 mark, but based on how things have been going I assume that 'something big' is already in the works somewhere.
The fact is, I wouldn't even be able to 'play devils advocate' and point to a sign that Bitcoin could slow down in the short or long term - there's literally nothing to support that idea.
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Author: Justin Derbek
New York News Desk
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