Cryptocurrencies have continued to draw wide attention and recognition from all sectors. Bitcoin has seen an upsurge in price the past few weeks, and other altcoins have followed in that line.
Now, Bitcoin had reached the $20,000 mark that some analysts predicted a few months ago when the top cryptocurrency was hovering around $10,000.
Although Bitcoin has reached this record price level in the past, something is different with this rise. The difference is the fact that the rise is also affecting other altcoins in the market. Most altcoins have appreciated, and experts are even predicting more appreciation in the future.
The value of Altcoins also on the rise.
Although Bitcoin pulled back slightly from the record $20,000, some experts predict a further push to unprecedented levels next year.
The good thing about Bitcoin’s price movement is that all other crypto coins’ prices are also rising. For instance, Ripple’s XRP has tripled since its July lows. Also, the price of Ether (ETH) is rising, as it has gained about 60% within a month.
Major players in the mainstream will soon enter the market.
According to the editor of Palm Beach Daily, Teeka Tiwari, presently, most people who buy and trade Bitcoin are still just a small fraction of those who invest in global stocks and bonds. But that will change pretty soon, as mainstream investors are gearing up to participate actively in the crypto sector.
Teeka said traditional financial institutions would soon embrace investing in crypto assets because they want to generate income from Bitcoin investments. This is what will spur the market further, making Bitcoin and other cryptos scarce. As a result, the price of cryptos will increase beyond investors’ expectations.
Tiwari continued, saying PayPal represents a perfect example of mainstream companies who have a big interest and wants to play a big role in the industry.
The payments giant’s recent move to accept Bitcoin trading for its 345 million customers last month is an indication that the firm is ready for the industry.
However, the company says a buy-and-sell roundtrip will have a 6% fee on the platform. Another “hidden fee” is known as the “spread,” which is usually the difference between the offer price and the bid price.
But according to Tiwari, some of the new mainstream entrants are simply greedy because 6% is way too much to pay as commission to trade an asset. Any exchange that charges 6% as roundtrip commission for stocks would be faced with customer backlash and regulatory scrutiny; he pointed out.
Crypto fund manager Pantera Capital also weighed-in on PayPal’s appetite for Bitcoin. He said PayPal is taking up 70% of the available Bitcoin each day. Square, another firm offering Bitcoin trading to its 22 million clients, is taking 30% of the remaining.
With these higher commissions and Bitcoin scarcity, expert analysts predict a higher value of Bitcoin and other crypto coins next year. And hedge funds, trading firms, and investors are also thinking along the same lines.
