The current Bitcoin price rise looks promising. Within a brief moment, Bitcoin (BTC) burst through the $13,000 mark and even jumped above $13,500. At the time of writing this article on October 28, 2020, the Bitcoin price is sitting at $13,664.69 (+3.92%). In the last 30 days, the Bitcoin price is increased by almost +28%. This places the current predictions on Bullrun. Why we can not only be satisfied with what occurred but can even believe that we are only at the commencement of a more long upward movement, let’s see why. Here are the top 5 reasons that could launch a massive Bitcoin bull run before the end of 2020.
1. COVID cases in the EU and US at record highs
U.S. stocks had their most damaging day in four weeks over the dual increase of record coronavirus cases and political stalemate in discussions to implement more financial aid. The United States, Russia, France, and many other EU countries are displaying a record number of coronavirus cases as a tidal surge of cases reaches over portions of the Northern Hemisphere, pushing some countries to force new restraints. Still, the Bitcoin is sitting near $14,000, the highest since January 2018. The Bitcoin price has been on a growing trajectory for many months.
After the Covid-19 pandemic hit the world, the crypto market’s relationship with the stock market became clear. The SP&500, NASDAQ, and other indices were driving the trend for Bitcoin and the majority of other cryptocurrencies. The important thing to remember here is that anything that affects the price of the USD also invariably influences the price of gold. The interesting thing here is that it seems that this is not true when it comes to Bitcoin prices. This is because whenever the USD looks suspicious investors favor turning to gold and BTC. If we closely observe the market then before the pandemic and during the pandemic, many people switched to Bitcoin and this is one of the reasons why COVID-19 could be responsible for another major BTC bull run.
2. No US agreement on a Stimulus
The second major reason behind the possible Bitcoin bull run could be no agreement on a stimulus. Failure to touch an agreement provides human and financial as well as possible political expenses.
As mentioned earlier, the coronavirus has stiffened its hold across much of the U.S. with numerous new COVID cases, and the market remains weak. The recognition that any new stimulus would almost surely have to await the election added to the most dangerous selloff in U.S. stocks since early September. On the other hand, people are investing in Bitcoin and gold and this could be one of the reasons behind the possible Bitcoin bull run.
3. Bitcoin Price Decoupling From The Stock Market
In times of financial darkness, Bitcoin has been actively associated with the stock market. Lately, the stock market has encountered a visible sell-off, driven by concerns that the market has yet to recover, and that there appears to be no end to the coronavirus pandemic. Bitcoin price had a major breakout above $12,000 on October 20 accompanied by a breakout of $13,000 touching a peak of $13,350.
Similarly, the crypto market has been inversely connected with the Dollar Index, indicating that when the U.S. dollar augmented power against the Euro, cryptos would go down. However, recently, to the breakout above $12,000 and $13,000 and the multi-million investments from big companies like Stone Ridge or Square, Bitcoin and the crypto market appear to be developing a relationship with the stock market. It’s worth seeing that the last bearish movement appears to be coupled with the stock market again, but, the bigger view still displays that Bitcoin is decoupling from stocks. So, this could be one more reason that could launch a massive Bitcoin bull run.
4. Institutional Adoption Of Bitcoin
At least 4% of #Bitcoin (probably more) is now locked up in long term holdings by institutional investors.— Bill Barhydt (@billbarhydt) October 13, 2020
If you don’t get what’s about to happen then you’re just not paying attention.
Why does this matter? Read on… (1/6)
A rising amount of Bitcoin is being collected by companies these days. For instance, Stone Ridge Asset Management admitted that it had pulled up 10,000 BTC, signifying one percent of its assets under administration. Also, in July, MicroStrategy adopted Bitcoin as primary treasury reserve asset. After this, just a few days ago, PayPal entered the cryptocurrency market on Wednesday, 21, October 2020. The online payment system now allows consumers to purchase, sell, and keep Bitcoin and other cryptocurrencies using the U.S. digital payments company’s online wallets. So, the rising adoption of Bitcoin could be one of the major reasons behind the Bitcoin bull run.
5. 2020 US Election Results
The result of 2020 U.S. presidential election is crucial for bitcoin’s price. The economic stimulus is likely no matter who wins supporting the Bitcoin’s attractiveness as a fence against inflation. The negative response to the outcome in established markets will boost the requirement for haven assets like gold and Bitcoin, although it must be affirmed that Bitcoin has dispensed hints of relationship with the stock market in 2020. Still, as mentioned earlier, Bitcoin has almost decoupled from the stock market and that’s why this is one of the major reasons behind the Bitcoin price potential bull run.
Both Trump and Biden have remained reasonably unbiased and diplomatic on the subject of cryptocurrencies, but with enhanced consciousness encircling global CBDCs and institutional inflow into Bitcoin, the two competitors will be pushed into taking a diplomatic approach next term. As uncertainty increases, investors will heap into safe-haven assets, notably those not bound to any particular country, such as bitcoin and gold.