Bitcoin exploded above $18,000 this Wednesday, Nov. 18, to hit its highest price since December 2017 and mark a year-to-date return of over 150%.
The cryptocurrency climbed from $17,000 to $18,000 in just a single day, this time achieving an all-time high market cap of over 339B according to data from CoinMarketCap.
The latest surge in Bitcoin’s price could be traced back to Oct. 21, when PayPal announced it would allow the users of its digital wallet to buy, sell, and hold the cryptocurrency.
But that’s not all. This time the market situation is different than the one in 2017 and there are some claims and evidence that the bull run may still be in its early stages. The renowned billionaire investor Michael Novogratz said that the price of the token could rise to $60,000 in 2021 as it continues to replace gold.
Novogratz’s predictions are not only based on the fact that more and more big institutional investors and retail traders are investing in the cryptocurrency. He said that the rampant printing of money by governments and central banks fans the fire even more. Logically, as people lose fate in fiat currencies, they will turn to an alternative.
Citibank’s managing director Tom Fitzpatrick went even further to claim with his analysis that Bitcoin’s price may hit the mind-boggling $318,000 in December 2021.
Still, not everyone is so optimistic. Many experts argue that we may indeed see the next deep correction coming very soon. While it’s obvious there is genuine demand behind the current bull run, not all data is positive.
For instance, the google search popularity of the word “Bitcoin” is just 16% of what it was during the major bull run in 2017, as indicated by Google Trends. Also, many investors that got burned the previous time are likely to be skeptical.
Another big concern is that the Exchange Whale Ratio increased a great deal which means big investors are preparing to sell by transferring tokens to exchanges. Historically for Bitcoin, this has always led to significant price drops.
Still, the overall outlook of the crypto market is optimistic as many enthusiasts and big crypto stakeholders point out that the industry is attracting more quality attention. The increasing popularity of decentralized finance (DeFi) over the last year also brought crypto lovers peace of mind that everything is going in the right direction.