The year 2020 has certainly been a good one for bitcoin. While the token’s price took a hit at the beginning of the year, falling to around $4,000 per token, it has been steadily climbing in the last few months. In November 2020, it surpassed a new price point of $18,000 per token, only a little away from its all-time peak price of $20,000 per token.
As the price is being watched more closely than ever, experts are weighing in on where the price might go next and what factors might influence it for the rest of 2020.
Bitcoin to the Moon
One of the biggest stories in the crypto-verse this year was the announcement of PayPal rolling out crypto transactions for their users. For many, this represented a large step towards greater crypto adoption and visibility. The markets also responded positively to the news, with the bitcoin price soaring as a result. Now that the price is above $18,000. Some experts believe that the new PayPal services might have a longer-lasting effect on the bitcoin price than previously expected.
It must be understood that PayPal has a very large userbase numbering in the hundreds of millions. To adequately support the potential demand for crypto, the firm has been reportedly buying up large chunks of the new bitcoin supply. This, along with the demand from other platforms like CashApp, means that bitcoin will probably remain high in price.
“PayPal+CashApp already buying more than 100% of all newly-issued bitcoins. PayPal alone likely buying all within weeks. Where would Cash App get theirs? That’s where the finite-supply, inelasticity part comes in: At a higher price. #bitcoinshortage,” tweeted Dan Morehead, the CEO of Pantera Capital.
Considering the fact that PayPal is on its way to expanding its crypto services to all global users by 2021, the price can be expected to remain high. In fact, many already predict that bitcoin will meet and even exceed its previous all-time price high.
“We are about to witness one of the greatest bull markets in financial history. There is rarely a financial asset that increases in market cap measured in hundreds of billions of dollars over a 12 month period. It just hit me how historic this Bitcoin bull run will be,” said Anthony Pompilano, a co-founder and partner at Morgan Creek.
