06.11.202013:04 Forex Analysis & Reviews: Bitcoin's nearest target is $20,000

The primary cryptocurrency made a strong surge, exceeding the $15,000 mark in the wake of the most important political event, that is, the US presidential elections. Analysts confirmed that this happened for the first time in the last two years.

Last night, Bitcoin's price crossed the $ 15,000 barrier for the first time since January 2018. This main digital asset has shown its leadership qualities, turning the complexity of the current situation in its favor. At one point, it added almost 10%, continuing its bullish strategy the next day. Today, BTC is trading near $ 15,600 and is not going to stop there. According to Rob Sluymer, currency strategist at Fundstrat Global Advisors, the nearest goal of the first cryptocurrency is to reach a historic record of $ 20,000.

On another note, the growing demand for military-technical cooperation was recorded in view of the dollar's decline and a sharp rise in prices for precious metals, in particular gold and silver. At the same time, the market is adding new fiscal incentives to the price of leading assets, as well as building up QE programs by central banks, without waiting for the summed up result of the US presidential elections.

Experts have recorded a steady rise in bitcoin for the past five weeks. This week, the total capitalization of digital assets exceeded $400 billion. It should be noted that the last time the crypto market had a lot of money was before April 2018 ended.

The benchmark cryptocurrency has risen this week along with the leading indices of the S&P 500 and Nasdaq. Its popularity is due to its presence in the portfolios of large investors. Over the current period, the bitcoin dominance index has increased by almost 3%, close to 65%.

At the same time, several positive news provided invaluable assistance to the cryptocurrency market. For several months, the PayPal payment system has initiated the use of digital currencies, and Fidelity Investments has launched a fund focused on working with BTC. The promotion of the Grayscale Bitcoin Trust Fund also gives significant support to bitcoin. At the moment, the Fund owns almost 500K BTC worth about $6.7 billion, and this is not the limit.

Based on the observations of analysts, strong capital flows are flowing towards the military-technical cooperation. Many large investors are showing increased interest in bitcoin, including the management of JPMorgan Chase, which created its own digital currency – JPM Coin. In view of this, supporters of virtual assets are confident that they are best suited for diversifying investment portfolios. This issue is most relevant during periods of uncertainty caused by events such as the spread of COVID-19 or the US election. In the medium and long term, experts do not rule out increasing interest in the crypto market. They concluded that this will be an important step towards increasing the cost of digital currencies, primarily Bitcoin.