Crypto investors' confidence surges as it reaches $41,940 on Jan 8 after gaining 300 percent in 2020. Wall Street investors jumped into action, as did retail traders with everyone wanting a piece of the action. Now, on Jan 11, the price took a two-day slide, but analysts don't seem worried.
Experts say economic stimulus packages for Americans are helping fuel gains. People who got their coronavirus stimulus checks on the first day and immediately bought Bitcoins would be up $75 already. The average taxpayer can now become an investor and do their part to stimulate the economy. Stimulus recipients are seeing they can invest in Bitcoin and see better returns than if they sought advice from a financial advisor offering more traditional investments, like stocks and mutual funds. BTC is even outperforming gold, something novice investors often see as a way to store wealth.
Millennials should boost Bitcoin adoption as they are warming to digital investing in record numbers. Saddled with student loan debt and low incomes compared to their parents, millennials are constantly looking for fresh ways to grow their wealth.
The difficulty of mining new coins is also fueling investor interest. Despite miners creating fewer new blocks, they are remaining bullish on Bitcoin. Miners don't seem eager to part with their Bitcoins despite record high prices.
At the end of 2020, the chances of miners finding a hash, a 64-digit hexadecimal number, is at an all-time high. As more miners swarm the network, the competition is fierce. Mining equipment gets better each year, but computational power is expensive. It's also energy intensive.
Some financial experts predict Bitcoin will reach $100,000 before the end of the next year. Some analysts are less conservative, estimating BTC could reach $200,000 or more because of dwindling supplies. More institutional investors are eyeing BTC as well, which could reduce supplies even further.