Even with drug companies Pfizer and Moderna announcing they have successfully developed vaccines that can safeguard humanity from contracting the coronavirus, Bitcoin is going to continue surging to 2021.
Citibank strategist Calvin Tse says vaccine distribution is going to reignite confidence in the global economy and further devalue the American dollar. He believes the dollar will follow a similar path to that of the early and mid-2000. Tse says a 20% drop in the value of the dollar is a distinct possibility.
Governments Still Need to Approve Stimulus
Although the promise of a vaccine is certainly good news for financial markets in the long run, the reality is that while the world awaits mass distribution of a solution to the planets current biggest problem, it’s still a few months away. It’s also going to take years for some businesses to get back to square one. All of this means that more stimulus money is going to have to be printed by governments in order to help people stay afloat.
Everything is Looking Up
Bitcoin is experiencing highs it hasn’t touched since January 2018 and now Ethereum is following in its footsteps. Ethereum is now officially trading higher than $500 USD for the first time since July of that same year. This despite the fact that the Ethereum 2.0 upgrade appears to be imminently delayed as a result of the fact that investors still haven’t invested enough capital in the 2.0 upgrade in order to launch its beacon chain and proof-of-stake mechanism.
Supply Is Shrinking as the Price Doubles
Bitcoin’s supply cut in half on May 11 of this year. Here we are just over six months later and the price of the world’s most valuable cryptocurrency has doubled since then. There are now just 3.4 million bitcoins available-for-sale with more and more investors letting their money pile into cryptocurrency.
The next big psychological breakthrough for the price of bitcoin will be at the $20,000 USD mark where investors will watch closely to see if that price level gets rejected or it turns into support for another big run-up to start 2021.
Only time will tell what happens next.
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Written by: Jack Choros
Writer, content marketing at Netcoins.
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