1. Institutional investors coming onboardThe 2017/18 Bitcoin bull run was dominated by individuals. However, this bull run has seen a wave of institutional investors buying as much Bitcoin as they can get their hands on. This is not surprising seeing as Bitcoin outperforms competitors. For institutional investors who are looking for a high risk, high reward investment option, Bitcoin and cryptocurrencies are ideal for making up a small percentage of an investment fund.
2. Extraordinary return on investmentRisk-free returns are at an all-time low since various central banks have experienced a large amount of liquidity being pumped out of the system. The result has been a flattening of interest rates which means few investment opportunities that can yield dividend of at least 8%. Bitcoin, on the other hand, does not yield anything but has shown significant capital gains over the past few months.
3. Bitcoin has limited supplyBitcoin has a finite supply of 21 million virtual coins. The fact that there is a limit of Bitcoin, puts it in the same league as precious metals and gold. These coins are mined and this limited supply makes Bitcoin a disciplined currency with a strong scarcity value. Whilst central banks are printing money and using quantitative easing, Bitcoin’s supply is certain. As the saying goes low supply, high demand.
4. Bitcoin is a favourable alternative to traditional investmentsThe profile of a typical Bitcoin investor has changed dramatically to include retirees, forex and stock traders, students and more. Investors who might previously have been opposed to Bitcoin’s volatile market, are now turning to Bitcoin in a bid to diversify their investment portfolios.
5. Bitcoin whales are hodlingAccording to the latest data from CryptoQuant, Bitcoin whales are hodling. With Bitcoin testing the $18 000 resistance level, it has become evident that Bitcoin whales are not selling a lot of Bitcoin. Data suggests that the there is low selling pressure from whales and a long-term bullish cycle is inevitable. Should this remain unchanged, Bitcoin is set for a big leg up from here.
Is it too late to buy Bitcoin?This year, Bitcoin has surged by more than 50% to beat Gold and US equity indices. Social media and news sites are full of price predictions. The latest is billionaire investor Mike Novogratz advising Game of Thrones star Maisie Williams on Twitter to buy Bitcoin. Novogratz predicts Bitcoin could hit $65 000.
Furthermore, a leaked report from Citibank reveals analysts predicting a high of well over $300 000 by December 2021.
At this stage, it is anybody’s guess what Bitcoin’s new all-time high will be. Make sure you don’t miss out on the exciting Bitcoin bull market by buying Bitcoin on South Africa’s favourite cryptocurrency exchange, AltCoinTrader.