Bitcoin’s market value reached $10,800 on July 27, 2020, during a sudden price surge that was largely unexpected by investors.
That change represents gains of approximately 11% over one week. It also marks the highest value that Bitcoin has held since August 2019.
Analysts have put forward many explanations for the price surge.
Why Did Bitcoin’s Price Rise?
Some commentators believe that the crypto market itself caused the surge. CoinTelegraph argues that mass liquidation of “short” positions, combined with a widespread altcoin sell-off, may have driven Bitcoin’s price upward.
Simon Peters of eToro, meanwhile, has told MarketWatch that the growing popularity of stablecoins like Tether may have benefited Bitcoin.
Others see the broader economy as a factor. Tim Enneking of Digital Capital Management told Forbes that low U.S. dollar prices may be encouraging people to invest in Bitcoin as an alternative to mainstream investments.
Will Bitcoin Prices Keep Going Up?
It’s not clear whether Bitcoin prices will continue to rise. Yet Mike McGlone of Bloomberg, who predicted that Bitcoin would surpass $10,000, has suggested that Bitcoin will reach $20,000 this year.
“Bitcoin will approach the record high of about $20,000 this year, in our view, if it follows 2016’s trend,” he wrote in a June 2020 report.
Naturally, Bitcoin holders desire higher prices. However, other outcomes have a good side as well: lower prices encourage new investors to buy Bitcoin, while stable prices can encourage merchants to accept Bitcoin as a reliable currency.
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.