The Download: The past few weeks have been fruitful for Bitcoin, which has risen in value by 40 percent since early October. As interest in cryptocurrency builds and the U.S. dollar weakens, Bitcoin rose seven percent and was trading above $15,000 per coin. At its highest bidding price in nearly three years, Bitcoin has more than doubled in 2020.
Why it Matters: If Bitcoin continues to surge, the cryptocurrency will reach an all time high, topping out at $20,000. At the same time, mainstream financial institutions like PayPal and Square are embracing cryptocurrencies as viable payment methods and investments. Along with Bitcoin, gold will remain highly valued through 2020 and in the future.
In Their Words: “The Bitcoin and gold rally has been happening all year along with dollar weakness. It’s a longer-term trend,” says Jeff Mortimer, director of investment strategy for BNY Mellon Wealth Management. “Not only is $15,000 going to happen, but I stand by my predictions from the beginning of the year that [Bitcoin] will see all new highs before 2021.”
Surface Says: Bitcoin is being fueled by the volatility of the current political situation, but it’s safe to say that investors (and likely your neighbor) are trading the dollar and buying Bitcoin.