Why Cryptocurrencies are Pushing Higher

The cryptocurrency bull market appears alive and well, with Bitcoin soaring above $30,000.

All thanks to increased interest from institutional and retail investors, and concerns about potential inflationary impact of the latest stimulus package.  In fact, according to Reuters, the cryptocurrency is being “buoyed by demand from larger investors attracted to its potential for quick gains, purported resistance to inflation and expectations it will become a mainstream payment method.”

In addition, “While this is a major milestone for this nascent asset class, as retail, institutional, and blue-chip investors alike allocate more capital to this space, it would not be surprising to see other coins follow in BTC’s footsteps and for this upward trajectory to be sustained into 2021.”

Better, analysts are bullish on Bitcoin, as well.  Citibank for example says we could see $318,000 BTC in 2021. Guggenheim is calling for a valuation of $400,000. JP Morgan says it could rally on a $600 billion catalyst, which includes just a 1% allocation from global pension funds.