The 2020 Bitcoin (BTC) Rally Could Be Different From 2017

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Bitcoin (BTC) has increased its value fivefold since March 2020 and it is unpredictable exactly where the rally will end. Considering that the BTC price increased from $ 650 to $ 20,000 in 2017, the leading cryptocurrency may have a long way to go. So what are the differences between this time and the rally in 2017 and is it possible to see a similar rise again?

First difference: Bitcoin managed to attract institutional investors

Ryan Selkis, founder of the cryptocurrency research firm Messari, thinks the price increase will continue for a while. Selkiss is “90% confident” that he will soon renew his $ 20,000 record. Stating that $ 20,000 will be seen by the end of the year, Selkis thinks that the rally will not be limited to this. According to the famous founder, corporate participation, which is expected to increase as of January 2021, may also raise the BTC price.

The first indication that the 2020 Bitcoin rally might be different from the one in 2017 involves an old Bitcoin enemy. Bitcoin was recently on the agenda with the news of gaining the support of payment giant PayPal. In addition, BTC has attracted the attention and investment of institutions such as MicroStrategy. According to Selkis, it is very likely that new institutions will enter the BTC ecosystem with the new year.

Second difference: This time the rally is on the ground

Looking at the factors that triggered the rise in 2017, it seems that this is completely FOMO and ICO craze. The first digital money supplies enabled even purposeless projects that did not work to achieve an increase of 2x or more. This created a bubble, as predicted, and the resulting greed caused huge amounts of money to flow into the Bitcoin price.

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In this rally, it is seen that corporate money directly entered the sector. The full confidence in Bitcoin after the coronavirus outbreak can ensure that the rally is long-lasting. In 2017, the BTC price only lasted a few hours near $ 20,000. Selkis, on the other hand, thinks that this time the rally will continue steadily, rising to more than $ 20,000.

Grayscale’s purchase of sheer amounts of BTC and offering it to institutional investors is one of the greatest proofs of corporate money. The value of Bitcoin open positions offered by CME Group also appears to have exceeded the $ 1 billion threshold for the first time since its launch in December 2017.

In 2017, derivative product alternatives were negligible and the sector was completely on the back of the individual investor. Now it seems that this rally could be much more robust and lasting. According to Google Trends data, while Bitcoin searches reached 93 levels in the rally of 2017, now this is even below 20. In other words, it looks like corporate investment and “smart money”, not individual, that raises the BTC price so much.


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