Bitcoin has propelled the cryptocurrency market to rocket in recent weeks, with the total value of combined cryptocurrencies around the world adding $ 150 billion since the start of November.
The price of bitcoin hit $ 18,900 per bitcoin this week, approaching its 2017 high and helping the top five cryptocurrencies – ethereum, Ripple’s XRP, litecoin, and chainlink – to record massive gains. XRP has climbed over 70% this week alone, with Ethereum, Litecoin, and Chainlink all between 22% and 36%.
Now, as traders debate how far to go for this bull market, the bitcoin and cryptocurrency community braces for a pre-Thanksgiving surge – and could benefit from a boost from the U.S. Federal Reserve and the European Central Bank (ECB).
So far, Bitcoin’s bull run in 2020 is seen as more institutional than its 2017 retail boom, when the global bitcoin mania pushed the price of bitcoin to all-time highs of around $ 20,000 alone. so that it drops back to around $ 3,000 in 2018. But that retail demand could be imminent.
Even though the coronavirus pandemic is preventing families from coming together to the same extent as before Covid-19, historical data suggests that the major holidays in the United States – and Thanksgiving in particular – generally send the price of bitcoin significantly higher. .
“Nothing like a bitcoin run before Thanksgiving,” said Catherine Coley, managing director of Binance.US, a San Francisco-based bitcoin and cryptocurrency exchange launched by Cayman Islands-based Binance, the last year.
This year has been extremely unpredictable, but bitcoin has held its value for most of the year and the recent bullish momentum proves to many bitcoiners what we already knew: A global digital asset not tied to local fundamentals has a extreme potential for global growth and adoption, especially at a time when nations are printing more of their currency to boost economic activity. “
Bitcoin has grown its reputation as digital gold this year, finding support from Wall Street and some major investors as central banks revive their money printers in response to the coronavirus pandemic and the locks put in place to contain it .
This week, investors in the United States and Europe will have a clearer idea of how seriously the U.S. Fed and the ECB plan to provide additional stimulus in response to the surge in coronavirus cases around the world.
On Wednesday, the Fed will release the minutes of this month’s monetary policy meeting, in which President Jay Powell said changes to the asset purchase program to provide additional stimulus were discussed . Then, on Thursday, the ECB releases its minutes of the October meeting where investors will seek further information on the ECB’s options after announcing its intention to “recalibrate its instruments”.
Stock markets, along with bitcoin and cryptocurrency prices, have been supported by global stimulus this year, with investors applauding the seemingly unlimited funds being deployed.
Elsewhere, the bitcoin and cryptocurrency market was torched last month by the news payments giant that PayPal would be rolling out bitcoin buying and spending services to its nearly 350 million users, giving many developers and supporters of Bitcoin a long-awaited validation.
“For 10 years the arguments against bitcoin are the same and yet bitcoin has continued to develop its user base, infrastructure and value, despite opponents,” Danny Scott, Managing Director of the bitcoin exchange and Isle of Man-based cryptocurrency broker CoinCorner said via email in response to legendary investor Ray Dalio Twitter feed on his “problems with bitcoin”.
“I think we’re almost at the point where the proof requirement is on skeptics as to why Bitcoin won’t work rather than throwing empty, uneducated arguments,” Scott said, adding: “Bitcoin has been the best performing asset this year, not to mention the best performing asset of the past decade – statistics speak more than words here. “