Already in the summer of 2020, enthusiasts noted the positive dynamic change in the price of Bitcoin, that followed a long period of the crisis. In October and November, the cryptocurrency surprised not only enthusiasts, but the rest of the world as well: investors noted a steady uptrend that promises to reach a new historical high.
Autumn rate of Bitcoin and Altcoin
At the beginning of October 2020, Bitcoin adhered to the standard average annual cost: one coin was valued at 10000-12000 USD. It was during that period when a rapid and steady growth began: on October 22, the asset reached 11535 USD and on October 31 it was 13800 USD.
And November consolidated the uptrend. One of the most notable breakthroughs occurred on November 5: during the day, the asset value rose from 14161 to 15608 USD.
On November 17, the price reached 17686 USD, and on November 20, it was 18718 USD. Investors started talking about the fact that the cryptocurrency has every chance to update the historical maximum reached at the end of 2017.
On November 22, investment management company VanEck announced that Bitcoin's volatility was below 145 stocks in the S&P 500.
Alternative cryptocurrencies are also growing in value following Bitcoin.
The positive developments in the cryptocurrency market are related to several factors. Investors and experts have different opinions:
1. The US SEC Chairman, Jay Clayton, believes that one of the main reasons is the inefficiency of classical payment systems.
2. "The global crisis of Covid-19 pandemic is also having a strong impact", said a representative of the Garantex exchange.
3. Halving. Many agree that Bitcoin halving played a significant role.
The rest of the market grows along with the changes in Bitcoin.
Factors of the subsequent growth of cryptocurrency
The forecasts for the further development of the industry are favorable. One of the reasons is the interest in digital assets from reputable companies. Back in October, PayPal announced that it had added the function of buying and selling cryptocurrency.
The state of the world economy and trends in its further development also favor the growth of demand for Bitcoin, Litecoin, Ethereum and other assets. The risk of devaluation of national currencies will force people to invest in cryptocurrencies in search of a safe haven.
Representatives of the Grayscale also speak about this. According to Michael Sonnenschein, Grayscale Investments managing director, many investors see digital assets as a protection against inflation.
Earlier, a thematic survey was held among the company's clients: 55% of respondents said they were ready to invest in cryptocurrency, 85% of holders first invested in digital assets only in 2020.
As for the near-term prospects of Bitcoin, the forecasts are also favorable. Fundamental trends will prevent the currency from dropping below the 11000 USD, and the factors listed above will most likely allow updating the historical maximum.
Some experts believe that in the near future the main cryptocurrency could reach the 100000-500000 USD mark.