Bitcoin trades above $15,000, the highest level in nearly three years, as the United States heads for a presidential change and the US dollar weakens. The COVID-19 pandemic has also driven the value of Bitcoin to more than double as interest in the cryptocurrency builds.
Bill Noble, chief technical analyst at Token Metrics, said nothing is stopping the digital currency from going to the 2017 high. “Everybody is afraid to miss out, and that drives the price,” Noble said. “Lingering uncertainty about the outcome of the presidential election may also be fueling the recent Bitcoin spike, and investors may be fleeing the dollar and buying it.” Michael Sonnenshein, managing director of Grayscale Investments, pointed out that Bitcoin comes out stronger after each challenge. He said people are looking at it as a store of value and inflation hedge. “The realization that Bitcoin is probably better as an investment than as an actual form of payment is key to its continued success,” Sonnenshein explained.
Demand for the same is soring in India too. This was brought about by the economic crisis triggered by the COVID-19 pandemic and the Supre Court overturning the government’s ban on trading in digital currencies. Nischal Shetty, co-founder and CEO of crypto exchange WazirX, told Zenger News that trading volume had grown by 400 per cent since March. “We used to trade in virtual currency worth $30 to $40 million a month, but now the value has gone up to $200 million a month,” he said. Arjun Vijay, founder of Giottus, explained that when markets are shaky, people invest in gold or crypto. He said the global increase in prices of cryptocurrency and the Supreme Court’s order have brought in double cheer for the sector.
Its a similar situation in the East as well. According to teh 2020 Geography of Cryptocurrency report by Chainalysis, Egypt ranks 64th out of 154 countries on the firm’s global cryptocurrency adoption index. The report ranks Ukraine first, followed by Russia, Venezuela and China. Wael al-Nahhas, an Egyptian economist and financial adviser, explained that unemployment and recession resulting from the spread of the coronavirus and the precautionary measures taken are the main reasons behind the youths’ inclination toward Bitcoin trading and mining. He said many young Egyptians started investing in small amounts despite the increase in the value of the cryptocurrency. “They started mining satoshi, which is 100th millionth of a Bitcoin.”