BTC showed strong performance last week, breaking the previous high of $ 58,354. Bitcoin continued to rise, soaring to a new all-time high (ATH) of $ 61,781 on March 13, before retreating slightly.
The Institutional Wave Continues to Push Bitcoin Up
Bitcoin has tripled in value over the past three months and has surged more than 1,000% over the past year, rising sharply due to the growing demand for hedging against inflation and a plethora of investment opportunities from institutions and companies.
Analysts attribute the rise in Bitcoin’s price to institutional investments that have continued to support the digital asset. Recently, the corporation was joined by the Meitu Chinese-beauty app, announcing the purchase of BTC for $ 40 million.
The digital asset’s current market capitalization is estimated at $ 1.1 trillion, putting the asset’s valuation above that of major banking institutions such as JPMorgan Chase. According to Documenting Bitcoin, an organization that has taken it upon itself to educate people about cryptocurrencies:
“Bitcoin is now worth more than the three largest banks in the world combined, JPMorgan Chase, Bank of America, and ICBC.”
In addition, Goldman Sachs recently reported that customer needs for Bitcoin and cryptocurrencies are growing. After three years of suspension, Goldman Sachs is ready to embark on a journey through the crypto space again, offering contracts for crypto assets. The bank will reopen its cryptocurrency trading platform, which supports Bitcoin futures trading.
When Meitu and Goldman Sachs joined MicroStrategy and Square to support Bitcoin, and institutional investment became one of the main reasons why the crypto asset continues to rise in value.
In addition, the announcement that President Joe Biden recently signed a $ 1.9 trillion stimulus package to fight COVID-19 also pushed Bitcoin higher. This will be the third round of fiscal stimulus provided by the US government.
Historically, Bitcoin has performed well during the pandemic. Due to the depreciation of the US dollar due to the Federal Reserve’s strategy of mass printing money, many investors rushed to BTC as a protection against inflation, and this was reflected in the value of the Cue Ball. And the forecasts are simply stunning!
Bitcoin — $ 175,000 by the end of the year
Richard Byworth, CEO of Diginex Ltd., a digital asset financial services company whose shares are listed on the Nasdaq, gave a bullish forecast for the price of MTC at $ 175k at the end of the year.
According to Bloomberg, Byworth attributed his pricing vision to the potential impact of the recently signed anti-coronavirus stimulus packages.
Every eligible American will have an incentive payment of $ 1,400, and this amount will necessarily increase depending on the size of the family. Stimulus checks, as well as other programs through which funds will be channeled, should flood the economy with so much paper currency in circulation that it could trigger a massive wave of inflation. This could lead to higher inflation, which is bound to lower the value of the dollar, as purchasing power is likely to be limited.
Investors, business owners, and publicly listed companies will not want to be caught in the crosshairs of a devalued currency and will seek refuge in an asset class that can serve as an ideal hedge against inflation. Last year, since the incentive checks were first issued, Bitcoin has performed well, and judging by how quickly attitudes towards BTC are changing, investors are likely to abandon gold in order to accumulate more of the digital currency.
According to CoinMarketRate, Bitcoin is already showing bullish growth due to the potential impact of stimulus checks, as the cryptocurrency hit a new all-time high of $ 61,683. 86. At the time of writing, however, the largest coin is selling at $ 56,668.19, down 4.86% in the last 24 hours.
Byworth’s forecast is a view shared by many other crypto supporters, and with the previous record of Bitcoin always closing the year higher than it started, the potential to reach this milestone is even more promising.