Bigger bets are being placed on bitcoin.
Bitcoin has steadied since we saw new all-time highs last week. The world’s largest cryptocurrency continues to hang around the $19,000 level as it heads into week 50 of 2020.
As of writing, the price of bitcoin is $19,100.
- Bitcoin is down roughly 0.8% in the last 24 hours
- Bitcoin is down about 3% in the last week
- Bitcoin is up almost 29% in the last month
Remember when Michael Saylor and MicroStrategy made waves in the cryptocurrency space by putting hundreds of millions of dollars in bitcoin? Well, Saylor and team are back at it again.
MicroStrategy announced this week that they plan to sell up to $400 million in a convertible senior notes offering that will likely fund even more bitcoin allocations. Read the press release at CoinDesk.
With bitcoin hitting new all-time highs in recent days, we’ve seen a resurgence of bullish price predictions. Some big names in crypto are calling for a $100,000 bitcoin by the end of 2021.
Ethereum launched ETH 2.0 this past week. That means that the second largest cryptocurrency is beginning its transition to a proof of stake system, allowing holders to earn ETH via staking.
How Does ETH 2.0 Impact BTC?
Bitcoin hitting all time highs and ethereum launching ETH 2.0 at more or less the same time is a wild thing to watch. We are also seeing more investors being introduced to crypto through increased retail and institutional adoption. It’s A LOT happening all at once.
Ethereum could be starting to decouple from bitcoin.
With upgrades coming to ethereum, it’s possible that the second largest cryptocurrency will begin to truly establish its own fundamentals and separate itself from bitcoin in terms of price action.
New bitcoin all time highs could be driving greater interest in ethereum. Newcomers might see ethereum as a less expensive investment.
There’s a lot still up in the air when it comes to the bitcoin — ethereum relationship. This is something to watch as bitcoin price action continues to test all time highs and ETH 2.0 progresses.
There’s no reason to think bitcoin won’t continue to test $20,000 as we head into the final weeks of 2020.
Bitcoin is garnering more retail and institutional interest. The sheer case of supply versus demand is pushing prices higher and there’s no reason to think that will change anytime soon.
Now that major players are locking up BTC for the long term, we are approaching a point where governments can no longer sit on the sidelines of the crypto conversation.