Bitcoin Above $16,000 With Highs In Sight

November 17, 2020, by Cris
Bitcoin continued to charge higher with the world’s largest cryptocurrency trading well above the $16,000 level on Monday.
Bitcoin market analysis

The performance of Bitcoin price is even more impressive after last week’s crash in safe-haven assets after the emergence of a potential coronavirus vaccine.

Safe havens such as the Japanese Yen and the Swiss Franc were under pressure last week after news that a vaccine from U.S. drugmaker Pfizer had performed well in a Phase 3 trial.

The news boosted risk-taking in the markets and this removed demand for safety, which translated into a crash of $100 in gold. For gold, it removed the two pillars of support that the precious metal has seen this year:

  1. The uncertainty over the length of the virus
  2. The amount of stimulus that governments and central banks would embark upon.

During this summer, Bitcoin was following the fortunes of the U.S. dollar and gold but the crypto coin has now dislocated from those correlations to chart its own course.

The recent PayPal news continues to fuel crypto demand and the U.S. investment bank JP Morgan said in a report that they see evidence that investors may be switching from gold into Bitcoin investments.

JPMorgan’s experts recently said recently that:

The potential long-term upside for Bitcoin is considerable if it competes more intensely with gold as an ‘alternative’ currency we believe, given that Millenials would become over time a more important component of investors’ universe.

The market cap of Bitcoin would have to rise 10 times from here to match the total private sector investment in gold via ETFs or bars and coins.

As of this writing, Bitcoin is trading at $16,613 and the target is the all-time highs near $20,000. If it gets to new highs, then the media will turn its attention to the move and retail money will chase the high once again.

Litecoin continues to benefit from the positive market sentiment with the coin trading above $67.00 on Monday and the $80.00 level is in sight if it clears the $69.00 high set in mid-August.

Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.