Everyone have been wondering why Bitcoin is suddenly increasing in value towards this period of the year as it started the year at about $3k and was revolving around the $5k benchmark at the middle of the year.
Futures have been doing well with bitcoin, Bitcoin has grown over 51% between the last one month which is a very good increase and profit for investors. The world has been looking for a lot of safe haven over the last 6 months so they can keep money since the governments around the world decided to print money t tackle the pandemic as well as to keep the economy going instead of completely collapsing. The inflation rate in my country this year is 14% and this is not a good thing.
Safe havens like the Swiss Franc, Gold, Silver, and Bitcoin are in high demand as this assets do not have excessive printing but rather are limited in demand. Companies as well as individuals have invested a lot in Bitcoin this years thanks to the pandemic. Unlike in the previous boom in 2017 where Bitcoin was associated with black market, this year it isn't associated with such. A lot of government agencies are using it as a means of payment and exchange. Also, companies like Square has invested a lot of their liquid funds into the purchase of Bitcoin.
Do not forget that Bitcoin does not requirement the government to control it, investors see this as a better safe haven to gold and other precious metals, coupled with the fact that bitcoin just halved some months back. Thanks to the government giving out free money, there is a lot of money to invest and throw around but if investors invest in stocks, there is a possibility that more stocks would be printed and the stock market can fall due to neutralized printing of more stocks.
With this, do you think Bitcoin would hit the $20,000 benchmark of 2017?