Bitcoin Breaks Above $16k For The First Time Since 2018

Analysis

The crypto community is really excited after seeing Bitcoin breaking the important resistance level of $16k.

At the moment of writing this article, BTC is trading in the green, and the king coin is priced at 16,195.00.

CoinDesk refreshed its readers’ memory and noted that the king coin clocked a high of $16,157 at 10:12 UTC, a price point last seen on Jan. 6, 2018.

Today, BTC went event further.

It’s been also revealed that the US election definitely has something to do with all the fuss in the crypto space and more than that, the projected US president Joe Biden could definitely influence fiscal policies over the next four years and this could affect inflation against which BTC is a hedge.

We’ve already addressed some potential scenarios. 

The Daily Hodl recently revealed that Ray Dalio, the founder of hedge fund firm Bridgewater Associates, said that he believes governments will outlaw Bitcoin (BTC) if its success is too great.

Bitcoin investments to continue

“Against the backdrop of stimulus from the Federal Reserve, we expect investors holding cash to continue to allocate to bitcoin,” said Kyle Davies, co-founder of Three Arrows Capital.

“The interest so far in 2020 has been primarily from institutions, and we could see more retail participation when bitcoin breaks its previous all-time highs of $20,000,” Davies continued and explained.

It’s also important to mention the fact that the coin has been getting massive and important validation from some public companies and prominent investors as a store of value asset and it’s facing a supply crunch – this is due to increased institutional participation.

The online publication mentioned above also made sure to note the fact that the U.S. billionaire investor Stanley Druckenmiller disclosed on Monday a BTC position and said that BTC would outperform gold in the long run.

Analysts also told CoinDesk the BTC price might consolidate for a short period before it will move toward $20,000 in December.

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