Despite the recent sharp rise in the price of bitcoin, one prediction suggests there may still be room for growth .
The scenario described by the market analyst and cryptocurrency expert at eToro, Simon Peters, is relatively complex.
Peters notes that, in the last week alone, the price of bitcoin has surpassed 3 levels, reaching a 107% gain since the beginning of the year and exceeding the $ 15,000 threshold for the first time since January 2018.
This growth has been very sustained, surpassing $ 12,000 a couple of weeks ago, and then also exceeding $ 14,000 and $ 15,000.
However, despite the effect of the US elections on global financial markets, this would not be the only reason why the price of BTC has risen to these levels.
Bitcoin, the reasons for a bullish price prediction
One of the reasons that have been pushing investors towards Bitcoin for a few months is the fear of the devaluation of fiat currencies globally, due to an increase in fiscal stimuli, especially those announced to face the new pandemic emergency.
According to Peters, when central banks announce their extensive new plans to pump money into economies, many cryptocurrency investors will interpret this as an important signal to buy Bitcoin.
In other words, although the momentum due to the US elections is running out, if the fiscal stimulus situation in the US clears up, it could be expected. further weakening of the US dollar Y more increases in the price of bitcoin in the future.
It is worth noting that the possible new president of the United States, Joe biden, promised still more stimuli during the election campaign than Trump during the first wave of the pandemic, suggesting that the US dollar could weaken even more in the coming months than it has. so far in 2020.
On the other hand, Peters also notes that the amount of BTC held by brokers or stock exchanges continues to decline, suggesting that investors are increasingly looking to hold it for long periods of time, rather than using it for short-term trading.
"The reduction in the amount of bitcoins in circulation and the increase in demand could be some of the reasons behind the continued increase in prices."
Instead, the CTO of Bitfinex, Paolo Ardoino, commented on the current situation:
“We have witnessed the rise and dominance of bitcoin as the final votes in the US elections are counted. The increase we've also witnessed in Ethereum trading volumes over the past 24 hours is spectacular in a year that has driven so much innovation in the digital asset space. Given that Tether's market capitalization exceeds the US $ 17 billion mark, you could say that the era of cryptocurrencies has begun. "