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45% of Australians Invest In Crypto “Because it’s going up in value”
Nearly 50% of Australians are investing in crypto-assets because “it’s going up in value”. Moreover, 19% of Aussies are investing in cryptos for “portfolio diversification”, followed by a 13% that consider digital assets as a hedge against inflation.
Likewise, Ethereum has replaced Ripple as the second most-preferred digital asset for Aussies, with 6% of them owning and trading ETH.
Bitcoin as a Store Of Value For Aussies
There could be a biased background if Australians are only investing in cryptocurrencies in a rushed manner just because large corporations are accumulating and pumping BTC’s price —there is at least 30% of BTC supply own by tech and investment trusts—. The major differences for this bull compared to 2017 can be outlined in the following:
- The COVID-19 pandemic not only crashed the Stock Market and contracted global economies— the U.S. Federal Reserve started to print more money as thousands of Americans were losing their jobs every day due to lockdowns.
- Hence, the more money is printed, inflation increases. The Dollar is considered the world’s reserve asset and, naturally, people will seek better stores of values and any asset that works as a hedge fund against that inflation, such as precious metals; digital assets, and other commodities.
Bitcoin’s evolution has surpassed the first stages of hypeness that was driven by retail traders, trading and exchanging outstanding amounts of BTC. According to Forbes, transactions by November 2017 surpassed more than $2B worth of Bitcoin. Now the stage for BTC has surpassed that collectible level, entering the store of value scenario.
What Aussies Should Consider Before Investing in Crypto
Reviewing the charts, a $38-40k price could become an essential support level for Bitcoin. In mid-January, the price dipped more than -10%, entering a strong consolidation zone that swung the price between $30-34k levels before Tesla’s announcement.
The more vertical the price direction is, the more speed the price has in it. This is what is called time-based pricing. The arrival of institutions has skyrocketed the price of Bitcoin, turning the price direction more vertical — which means a higher price velocity.
The price drop at the end of January could be considered the first correction since the bull run started in mid-2020. Likewise, if other institutions follow Tesla’s path, Bitcoin could go as high as 100,000 by the end of 2021 before going through two more correction zones.
Reviewing the charts, there could be another correction zone with price swings between 40 to $45k, before taking off to +50K. This could mark an opportunity, considering several Aussies bought the dip when BTC fell to 28K.
CNBC crypto-trader and analyst Ched pointed out the price could reach even higher levels, up to US$70,000 in a month. The probability relies on the outstanding shift in price speed and trading volume reviewing the charts.
Australians who are new to cryptocurrencies looking to invest in them can also review Cryptonews Australia’s Bitcoin Guides to know the essentials before investing in these assets.
Author
José Oramas
José is a journalist and translator with a keen interest in blockchain and cryptocurrencies.
