Bitcoin is once again soaring. Cryptonaughts rejoiced as the price went beyond $13,850 in the past several hours. Where might it go from here? Anything is possible.
The powers that be are predicting a no-deal Brexit for Britain, which means the country will be entering entirely new territory financially.
On top of that, some experts don’t believe the recent price rise for Bitcoin had much to do with Bitcoin itself.
Youthful angst, coupled with uncertainty about the world, could drive demand for cryptocurrency.
Despite everything, people are reportedly opening up record numbers of shorts against Bitcoin. The idea is that even if it takes off, it’s got to dip, inevitably. But what if it just goes in a straight line, all the way to $100,000?
Logically, you can’t rule it out, not with Bitcoin.
For its part, Brexit might mean that people on the in the Isles have no choice but to use cryptocurrency for certain payments.
Accepting it from tourists, as well, might make the most sense.
But that wouldn’t explain the current demand for cryptocurrency.
By and large, recent bull activity has been attributed to large institutions coming in, bringing large amounts of capital with them. When billions splash around the crypto markets, the result can be severe, usually for the better.
If the goal of most new investors is to buy and hold, then it stands to reason that a decreasing supply of BTC will trade. The effect will be that there will be more demand than supply, driving the price even further.
In another scenario, the Bitcoin price gets high enough that even long-term investors see the value in cashing some out, then buying back in as the market corrects itself. Whatever that sell-off looks like, we might expect $10,000 to become the new norm for the price of BTC.
Meanwhile, Brexit might have some nasty backlash.
The US might get involved in Iran.
The continuing trade wars with China – and other economic partners – present further risks.
Combined, this confluence of events might put crypto in even higher demand. In times of uncertainty, people want hard assets. Whatever the criticisms that some have, cryptocurrencies are primarily hard money.
Not only are they hard money, but they are portable. Relatively simple to secure. They’re not subject to the whims of the government. Petty despots and the like cannot simply seize them.
Within reason, madness in the world can drive the price of speculative, appreciative assets like bitcoins and gold. However, if things get too bad, it won’t matter.
Systems of order are necessary to a certain extent even to ensure the equitable trade of cryptocurrencies. If everything breaks down, can we expect it to matter at all what assets we hold?
Disclaimer: The views expressed in the article are solely those of the author and do not represent those of, nor should they be attributed to, CCN.com.
Last modified: June 14, 2020 11:17 AM UTC