I remember the last time Bitcoin hit $15k

When I wrote my previous post last Sunday, bitcoin was around $13.8k a coin. This week it has skyrocketed  past $15,000, for the first time since January 2018. The price increase was more or less synchronized with the vote count in the United States and the ever-increasing tension in the country. Bitcoin has gained 17% in the past week, 28% in October, almost 60% since the end of August and is up nearly 300% so far this year. The capitalization for the entire cryptocurrency market  has been bullish over the last 30 days, shooting up to almost $450 billion, its highest level since the spring of 2018. Bitcoin has more than tripled since the pandemic kicked off in March, when the financial markets were infected by the coronavirus. If we look back at the end of 2017, when bitcoin and rest of the market was setting new records every day, there was a complete mania, with coverage around the clock and everyone talking about bitcoin and digital assets. This time, no one is really surprised, things are a lot calmer and the hype is barely getting started. It’s as if everything that’s happening is normal and its suppose to be like this. As I write this post, bitcoin is hovering around $15,500 and everything points to a bull run that is going to be a lot longer and a lot bigger. More importantly, we’ve reached a critical point, where bitcoin is no longer considered an outsider, but has become a mainstream option for investors. 

Ilias Louis Hatzis is the founder and CEO at Kryptonio, a bitcoin and cryptocurrency “keyless” wallet, that lets users manage bitcoin and crypto, without private keys or passwords.

Bitcoin’s stunning climb in recent months, resembles the meteoric rise in the closing months of 2017. After the 2016 election, bitcoin soared from $600 to $740. Today, bitcoin is trading at a new year high of $15.5k and it doesn’t look like it’s going to slow down anytime soon. With a new record of 100 days above $10k, bitcoin’s credibility and perception as a durable store of value is only growing.

With Biden in the White House and the Republicans in control of the Senate, it doesn’t get any better for bitcoin, as the dollar is expected to significantly drop. A declining dollar can only drive more investors to alternative investments, and further fuel bitcoin and other cryptocurrencies.

Today, when you look at bitcoin’s valuation ($285 billion), you’ll see that it’s more valuable than most of the major US. publicly-traded companies. Bitcoin is behind the Home Depot, the 17th largest company in the United States with a a market cap of $306 billion and well ahead of household names such as Netflix, PayPal, Bank of America, Coca-Cola, Salesforce and Disney. When bitcoin hits $23,000, then it will also overtake the three largest financial institutions in the United States, Visa, Mastercard and JPMorgan.

Crypto could could become a safe haven, as trust in fiat money declines. Just like gold, bitcoin could benefit as central banks print trillions in stimulus support, to counter the devastating effects of the Covid19 pandemic, potentially diluting the value of their currencies.

A JPMorgan report indicates that family offices are not just considering bitcoin over fiat, but they’re already thinking about bitcoin as alternative to gold. Analysts at the banking giant compare bitcoin with gold, saying it could compete more intensely with bullion as an alternative store of value in the coming years. As institutions continue to come in, Grayscale records an inflow of $215 million to its Bitcoin Trust just last week. The rise of the Grayscale Bitcoin Trust only confirms that it’s not just millennials driving demand for bitcoin, but institutional investors.

There is nothing is surprising about this rise.

It’s only the result of the several elements coming together, creating a positive feedback loop. MicroStrategy purchasing 38,250 BTCs for $425 million. At the current price, MicroStrategy’s investment is close to $530 million. Not bad for a day’s work. PayPal and Square are a few more reasons. Paul Tudor Jones bet on Bitcoin is another. JPMorgan has made a complete U-turn with its Global Markets Strategy group touting bitcoin as a viable alternative to gold among millennials and setting up its own dedicated cryptocurrency business unit called Onyx.

All these announcements are creating more awareness and attention around Bitcoin. They are also helping people understand that bitcoin is here to stay and its not a platform for criminals and money launderers. Last time bitcoin hit $20k people spoke of a bubble and it was banned in counties like China. Jamie Dimon, chairman and CEO of JPMorgan Chase, called bitcoin a fraud, threatened to fire anyone trading it. Now the race is on, even central bankers are considering their own coins. If bitcoin continues to surge, it may not be long before the cryptocurrency finally tops the all-time high of just under $20,000, reached in December 2017. Bitcoin is no longer for the crazy ones.

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