The Factor That Could Lead To Much Higher Prices This Bitcoin Bull Run

2020-12-29 19:59

Bitcoin price reached more than $28,000 over the holiday weekend, giving investors extra to celebrate as the bizarre year of 2020 comes to a close. 

Analysts are mixed — some warn Bitcoin has topped out based on technicals while others look to fundamentals and other factors unique to this cycle such as the emergence of institutional buyers to support continuation. But there’s yet another overlooked factor that one investor and crypto startup founder claims could be a real game-changer during this bull run, that wasn’t around during the last. 

How Crypto Collateral Loans Make This Cycle Special

If you take the current Bitcoin market cycle from top to bottom and layer it over the last (pictured below), it’s clear the first-ever cryptocurrency is trending far stronger than the previous example. 

The last bear market into the raging bull that was 2017, currently stands as the best historical example of what to expect this time around. And by all standards, Bitcoin is beating almost all expectations. 

RELATED READING | MARKET TIMING WIZARD BEHIND TD SIGNAL WARNS OF BITCOIN REVERSAL

According to Dutch investor and entrepreneur Marc van der Chijs, “one reason” things are different this time around, is due to Bitcoin collateral-based loans. Rather than cashing out crypto holdings to pay bills, taxes, or to cover emergency situations, holders can get cash in exchange for putting some BTC up for collateral. 

By taking that selling pressure out of the market, there’s more likelihood of price rising exponentially, and could be a “game-changer.”

Bitcoin’s bull run is way ahead of the last cycle already | Source: BTCUSD on TradingView.com Other Unique Factors Behind This Bitcoin Bull Run

But that’s just “one reason” this time is “different.” And although that is something investors are warned of foolishly thinking, the evidence does suggest things are shaping up in a unique way this time around. 

Institutions buying at any price, while fiat money is inflated beyond recognition. Markets have gone haywire, and the world is realizing what is to come, and Bitcoin could protect against that. 

RELATED READING | HOW BITCOIN IS THE SOLUTION TO WHAT ONE BILLIONAIRE CALLS AMERICA’S GREATEST RISK

This time around, Bitcoin also appears to have little competition from altcoins that stole at least some of the capital coming in last time around.  

Finally, each cycle is fundamentally different due to the lessening supply that comes following each block reward halving. With less BTC supply and the greatest demand ever, far beyond collateral loans are there enough reasons to believe that this bull run will be the most significant yet for the cryptocurrency. 

Featured image from Deposit Photos, Charts from TradingView.com

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