Bitcoin, trapped in a long-running and bitter bear market, has been searching for the next catalyst for a price break out after hitting all-time highs of almost $20,000 in December 2017.
The bitcoin price has been steadily falling since then, dropping as low as $3,150 per bitcoin, down an eye-watering 85% from its peak and leaving investors and traders out in the cold.
Now, it’s been predicted that the spark that could cause the next bitcoin price rally could come from a surprising source: the world’s central banks that might want to stock up on supplies of bitcoin as a form of digital gold.
“The main use for bitcoin today is as digital gold,” Garrick Hileman, head of research at Blockchain and research associate at the London School of Economics, told AltFi’s Crypto For Earthlings podcast. “The question is though, who will be buying digital gold? If central banks start to accumulate bitcoin, that could be hugely impactful on bitcoin’s price.”
Central banks, which set interest rates, manage the creation of new money, and make sure countries’ economies continue to tick along without overheating, manage staggering amounts of wealth and moves by big central banks, such as the U.S. Federal Reserve or the European Central Bank, to build up reserves of bitcoin and cryptocurrencies could trigger an unprecedented wave of demand…
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