The world of cryptocurrency has been a rollercoaster ride over the past few years. After hitting its all-time high of nearly $20,000 in December 2017, Bitcoin experienced a severe decline, hitting a low of around $3,000 in December 2018. However, true to its nature, Bitcoin has rallied again in 2020, and the Bitcoin fans are looking at $30,000 as the next target. The recent collapse has caused investors to be more cautious in their approach towards traditional banking institutions, and this has led to the increased popularity of Bitcoin.
Bitcoin has been subject to a lot of criticism from traditional banking institutions and governments around the world. They have labeled Bitcoin as a speculative asset and have warned investors about the risks associated with investing in cryptocurrency. However, this has not deterred Bitcoin fans, who have continued to invest in the digital currency, citing its decentralized nature and the potential for high returns.
In this blog post, we will explore why Bitcoin fans are looking towards $30,000 as the next target, how the recent collapse has affected the cryptocurrency market, and why traditional banking institutions are facing trouble.
Bitcoin Fans Look to $30,000 as Next Target
Bitcoin fans are looking towards $30,000 as the next target for the digital currency. Three Arrows founders pointed to this level as a key during the recent collapse. The reason behind this is that $30,000 is a significant psychological level for investors, and it could act as a catalyst for further price appreciation. Moreover, the Bitcoin market has seen a significant inflow of institutional investment, which has provided further support to the currency.
The recent rally in Bitcoin has been driven by a variety of factors. One of the significant drivers has been the increase in institutional investment. The likes of MicroStrategy, Square, and Grayscale have invested heavily in Bitcoin, and this has provided a lot of credibility to the digital currency. Additionally, the ongoing pandemic has caused a lot of uncertainty in the world, and investors are looking for alternative investment options.
However, it is important to note that Bitcoin is a highly volatile asset, and the recent rally could be short-lived. Investors should proceed with caution and only invest what they can afford to lose.
Trouble Swirls Around Banks
The recent collapse has caused a lot of trouble for traditional banking institutions. With interest rates at an all-time low, banks are struggling to generate revenue. Additionally, the ongoing pandemic has caused a lot of uncertainty, and this has led to a decline in consumer confidence.
Moreover, banks have been hit with a lot of fines for misconduct, which has damaged their reputation. For instance, Wells Fargo was fined $3 billion for their sales practices, and JPMorgan was fined $920 million for market manipulation. This has caused investors to be more cautious in their approach towards traditional banking institutions.
Furthermore, traditional banking institutions are facing increased competition from fintech companies. Fintech companies are leveraging technology to provide better and more efficient financial services. This has caused a lot of disruption in the banking industry, and traditional banks are struggling to keep up with the pace of innovation.
Token is Becoming Overbought
According to Miller Tabak’s Maley, the token is becoming overbought. This means that the demand for Bitcoin is outstripping the supply, which could lead to a further price appreciation. However, it is important to note that an overbought market could also lead to a correction, and investors should be cautious.
The recent rally in Bitcoin has been driven by a lot of positive momentum, but investors should not forget the risks associated with investing in cryptocurrency. Bitcoin is a highly volatile asset, and investors should only invest what they can afford to lose. Moreover, investors should do their due diligence and understand the risks associated with investing in cryptocurrency.
In conclusion, Bitcoin fans are looking towards $30,000 as the next target, and the recent collapse has caused investors to be more cautious in their approach towards traditional banking institutions. While the recent rally in Bitcoin has been driven by a lot of positive momentum, investors should proceed with caution and only invest what they can afford to lose.