Massive Bull Run Brings Bitcoin and Ethereum to All-Time Highs

At the time of this writing the price of

Bitcoin

is hovering between $39,000 and $40,000 after reaching over $42,000 over the weekend. To put into perspective how massive this current run is, Bitcoin was trading at just $23,000 three weeks ago and 90 days ago was sitting at just over $14,000.

It’s taken a while for Ethereum to come around, but just in the last 48 hours, it’s up around 25% to an all-time high that reached

$1,300 yesterday

. The question is, what’s driving this rally and how does it compare to 2017’s big run? Let’s take a quick look.

What Is Causing Bitcoin’s Latest Bull Run?

The latest run can be explained using the holiday season to some extent. It’s easy to think that maybe many purchases of Bitcoin were made by retail investors simply buying cryptocurrency for family and friends as holiday gifts. People were doing the same thing three years ago as they talked about cryptocurrencies around the dinner table.

The chief difference between what's happening now versus three years ago is that the spike the crypto world saw in mass media coverage with topics surrounding Bitcoin being featured on major news outlets and popular TV shows like

The Big Bang Theory

is not happening this time around.

That is to say that the average investor already knows about Bitcoin at this point. What’s driving it instead is fundamental investment. Cryptocurrencies as an asset class are taking another step not only towards adoption, but also maturity.

How the Next Bitcoin Price Correction Is Going to Be Different

The last time we went through this boom in 2017, Bitcoin saw a price correction of between 30% and 40% in the first quarter of 2018 and it happened relatively quickly. This time the same thing is likely to happen, but the difference is that a 30% price correction will only take Bitcoin back down around the $25,000 level we saw three weeks ago.

Other than the raw price, there’s another fundamental difference between the price correction that will come in early 2021 versus three years ago. That’s the fact that institutional investors aren’t going to sell off or lead Bitcoin to a mass exodus. Those that sell off this time will simply be retail investors who might’ve made a small profit. They will almost certainly move the needle a little bit, but they won’t change the fact that the narrative surrounding Bitcoin as a valid store of value is gaining strength in a way that means an entire new group of investors will hold onto their cryptocurrency and not even think about selling it.

As the narrative continues it’s obvious and seismic shift, it’s becoming quite clear that five years from now, the investing community will look at a $40,000 Bitcoin as being cheap.

There is a good chance that the total market capitalization of Bitcoin will be worth more than that of silver in 2021. And if the cryptocurrency eventually becomes worth more than gold, years from now, we could be staring at a Bitcoin price worth $600,000 and beyond.

Bitcoin to the moon!

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Thanks for reading. For more blogs on all things in Bitcoin, you can read more here.

Written by: Jack Choros

Writer, content marketing at Netcoins.