With a huge inflow of capital from institutional and retail investors alike, bitcoin has just reached a new all-time high, recorded at $60,445 at press time. But what has led to this super-cycle and where is bitcoin headed next? 

$1.9 Trillion Stimulus Bill Signed in the United States

First things first, many analysts believe that the recent record portrays bigger fears for inflation, as the US Dollar is devaluing following constant capital injections in the economy. While the stimulus bill will do wonders for the US economy as a whole, it is destined to lead to stronger inflation. Thus, it only makes sense that individuals everywhere are rushing to move their fiat to crypto, in hopes of retaining the value of their hard-earned cash.  While the crypto market is far from being a hedge against portfolio risk, its long-term uptrend does showcase serious potential for deterring inflation. Either way, anyone who had ever purchased bitcoin and hasn’t sold, is now in profit. 

A couple of weeks back when bitcoin first surpassed its previous $20,000 all-time high, many people thought that the coin would settle at a value slightly higher than its previously-attained record. However, the bull run had considerably more surprises in store for us.

After riding the uptrend wave to $40,000, bitcoin seemed to have settled in the mid $35K range, but yet again, this wasn’t all. Propelled by positive industry news and a true belief in its future as the world’s main digital currency, bitcoin has yet again increased, this time reaching an all-time high of $56,512. This places the coin on the clear path to $100K, and many analysts believe that this psychological barrier will be surpassed in 2021.