Bitcoin Quietly Rising as Digital Currency Is Being Accepted

With the national election grabbing headline news along with stock market rallies and rising real estate prices, most Americans have missed another story that can impact the banking industry. Bitcoin is surging. The digital currency rose to over $15,000 on Thursday marking its highest price since the beginning of 2018 when analysts thought it was at its peak.

As global equities grew, Bitcoin surpassed the markets and investors enjoyed a 6% return. As nice of a market rally as Dow Jones has had in recent days, only a few investors have taken advantage of a digital currency rally in 2020 that has yielded over a 100% return. Just in the last few weeks, the currency has gone from just over $10,000 to $15,000. Demand has increased as investors have accumulated the coins.

Cryptocurrency has shown signs of sustainability that have defied skeptics. In March, when the traditional markets were declining, investors grabbed the coins and the price dip did not last. Investors are buying and holding as well, and sell offs are not happening as frequently. While some charts have forecasted a pull back, it has yet to happen.

Cryptocurrency has yet to go mainstream and is still primarily a trader’s market. However, it is worth watching to see if countries continue to consider adopting a digital currency over the next 18-24 months and how it will impact currency. Bitcoin is showing signs it is here to stay, and may end up be an integral part of a balanced portfolio for investors.

Retail banking will not be impacted in the short term, but it could soon be part of an industry that is already in the midst of widespread transformation.