BITCOIN

What’s Driving the Latest Rise in the Price of Bitcoin?

October 22, 2020



Bitcoin is making a comeback ­– the kind of comeback that would make even the new Hummer EV proud.

 

Bitcoin was at a 52-week low on March 13 at $3925.27, and yesterday hit a 52-week high of $12887.81.  Wow.

 

What’s going on?

 

A lot, and of course, this is more art than science, but here goes an attempt at an explanation:

 

  1. Corporate buyers are piling into bitcoin. Example:  Square bought 4,709 for $50m for an average price of $10,617.97.

 

  1. Bitcoin accepted here. PayPal just announced that customers could hold bitcoin in its online wallet as well as use bitcoin with the 26 million merchants accepting PayPal.  Although Square and Robinhood already allow this, this is a BFD given the sheer size of PayPal.

 

  1. It’s digital gold, son. During economic downturns, people seek safety.  In the past, gold has always been considered a safe haven when the U.S. dollar is devaluing.  Well, the younger generation likes Bitcoin instead and views it more favorably than gold as a safe haven. 

 

This has got people wondering whether this is going to be another bull run to $20,000 and beyond, or a Quibi-style crash and burn.


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