The COVID-19 pandemic has had a massive effect on economies around the world, requiring fiscal and monetary stimulus of a kind not seen before, that will inevitably increase inflation rates in most corners of the world.
These inflationary and macroeconomic pressures will position bitcoin as a new asset that acts as a recognized store of value against inflation.
This is already evident by the clear trend among companies and institutions who are allocating a noticeable amount of their reserves into digital assets, most notably bitcoin. Keeping these trends in mind, and with more economic uncertainty arising from the pandemic, it is very feasible that bitcoin will approach $20k by the end of the year.
Great market adoption, a bigger influx of investors and favorable market fundamentals, will send bitcoin’s market cap toward $1 trillion over the medium term.
Bitcoin’s growing market cap means volatility will decline and as a result we will see the recognition of bitcoin as a legitimate asset class among retail and institutional investors.
One of the great benefits of bitcoin is its ability to open borders and connect users with new possibilities through a frictionless means of payments and a universally diversified population derived from productivity and innovation. This will ultimately be the catalyst for wider market adoption.
