Analysts have predicted that the Bitcoin spike will run into 2021 as Citibank foresees a 20% dollar fall. As stated in the research note by analyst Calvin Tse, the dollar fall may be tied to different factors, especially the hope of a COVID-19 vaccine in the coming year. He said:
“Vaccine distribution we believe will check off all of our bear market signposts, allowing the dollar to follow a similar path to [what] it experienced from the early to mid-2000s. Can the dollar decline 20 percent next year alone? We think yes.”
Since the beginning of the year, Bitcoin’s price has been rising, and analysts predict a further increase. Also, the digital asset has gained more recognition with an increase in individual and institutional investors. Also, a dollar fall will push the price of BTC, as many investors would acquire more Bitcoin.
Some months ago, when Microstrategy acquired 21,454 BTC worth $250 million, the company’s CEO Michael J. Saylor referred to Bitcoin as a “dependable store of value.” According to several analysts, Microstrategy’s BTC acquisition made more investors grow interest in the digital asset.
Recently, Ricardo Salinas Pliego, the second-wealthiest man in Mexico, declared that 10% of his liquid portfolio is in Bitcoin. In reaction, Microstrategy CEO said in a tweet that Bitcoin would get stronger as more individuals and corporations adopt the king coin.
Currently, BTC is trading at $17,043.29 with over $42 billion 24-hour trading volume.
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