Here Are the 4 Reasons Why the Bitcoin Price Increased to Reach $13,000 This Week

And this is only the beginning.

This week seems to mark an important change for the Bitcoin market. Since Monday, October 19, 2020, the Bitcoin price has increased by a little more than 13% to reach $13K.

Slowly but surely, the Bitcoin price is getting closer to territories that have not been explored since the end of 2017.

Some people frequently send me messages asking me how it is possible to predict these increases in the Bitcoin price. My answer disappoints them every time, but it is the only honest answer I can give:

It is impossible to accurately predict in advance when a Bitcoin price increase will occur.

Those who will tell you otherwise are liars. On the other hand, it is possible to express one’s feelings. That’s what I do from time to time. In my opinion, the current increase in the Bitcoin price was inevitable. The only unknown was when it would occur.

On closer examination, there are four main reasons for the surge in the Bitcoin price to $13K. I will share them with you to help you better understand why what we are experiencing now is only the beginning for Bitcoin.

PayPal officially announces its arrival in the Bitcoin world for the beginning of the year 2021

At the end of June 2020, there were many rumors that PayPal was working on a solution to allow its users to buy/sell Bitcoin directly from its platform.

This had already made a lot of noise, but there were still rumors.

On October 21, 2020, PayPal officially announced its arrival in the Bitcoin world for the very beginning of the year 2021. PayPal will offer to buy/sell Bitcoins to its 346 million users. The latter figure includes users of its mobile payment service Venmo.

Even better, PayPal will allow its users to make payments in Bitcoin in the 26 million businesses in its network.

This news has intensified the increase in the Bitcoin price that had already started at the beginning of the week of October 19, 2020. If the arrival of PayPal raises many questions, and I will come back to this in the coming days, it is also a strong signal for Bitcoin.

Bitcoin is no longer an enemy to be fought against, but a revolution that must be embraced or it will be overtaken in the future. The arrival of PayPal will bring exposure to Bitcoin to more than 340 million people.

Of course, not everyone will buy Bitcoin. Nevertheless, they will become aware of its existence, and especially of the fact that it is not reserved for illegal activities, as some politicians repeat in a totally misleading manner.

The big companies are coming into the Bitcoin world

MicroStrategy was the first major American company to fully embrace Bitcoin. On August 11, 2020, Michael J. Saylor, CEO of MicroStrategy, announced that his company had made Bitcoin its primary treasury reserve asset.

In September 2020, MicroStrategy continued its strategy by making a second purchase of Bitcoins. MicroStrategy now owns 38,250 BTC purchased for a total of $425 million.

With a Bitcoin priced as high as $13K, MicroStrategy’s investment in Bitcoin is now close to $500 million.

This is a strong endorsement of Michael J. Saylor’s strategy, but more importantly, it sets the stage for other major U.S. companies to follow. The day when these large companies will invest at least 1% of their total accumulated $4T of cash reserves is fast approaching.

In early October 2020, Square, whose CEO Jack Dorsey is a strong supporter of Bitcoin, made a similar move by investing 1% of its balance sheet in Bitcoin.

Square owns 4,709 BTC purchased for $50 million. Less than a month after this purchase, Square’s investment represents more than $61 million. This confirms the choice of the Square board to have trusted Jack Dorsey for this BTC purchase.

This movement will continue to intensify in the months and years to come. The Bitcoin rush has started for the big American companies, and nothing can stop it now.

This will necessarily impact the price of Bitcoin upwards.

We are approaching 6 months post-Halving

Those who have been in the Bitcoin world for a while know that the effects of Bitcoin Halving are never immediate. In 2016, it took six months after the second Halving for the Bull Run to begin.

In June 2020, some people were getting impatient with the lack of change in the price of Bitcoin. I even read articles where Bitcoin was seen as a boring asset.

These people had lost sight of the real signal and were blinded by the ambient noise. The real signal was the reinforcement of Bitcoin fundamentals. This continued throughout the summer. This will be the solid foundation needed for the upcoming Bull Run to bring the Bitcoin price close to $100k by the end of 2021.

Today is October 24, 2020, and it has been 5 months and 13 days since the third Bitcoin Halving took place.

We are slowly but surely approaching the six months post-Halving. It is from now on that we will witness the start of the Bull Run so eagerly awaited by everyone in the Bitcoin world, and beyond.

Grayscale continues to purchase Bitcoin on a massive scale for its customers

Grayscale investments manages the Grayscale Bitcoin Trust Fund, which allows the company’s customers to purchase Bitcoin. Since the beginning of the year 2020, Grayscale investments is making a real razzia on the Bitcoin supply.

According to the latest published figures, Grayscale Bitcoin Trust holds more than 468,000 BTC for its customers. This represents just over 2.5% of the Bitcoin circulating supply.

This rather incredible figure shows the growing interest of institutional investors in Bitcoin. Indeed, more than 90% of Grayscale investments’ clients are institutional investors.

Such an appetite on the part of Wall Street for Bitcoin confirms the change of mentality around Bitcoin since the beginning of the economic crisis in March. Bitcoin is now seen as the fastest horse in the race for profits.

We must pay tribute to Paul Tudor Jones who was the first renowned macro investor to opt for Bitcoin rather than gold in May 2020 as a hedge against the great monetary inflation we are experiencing.

The trend will continue to accelerate in the future, and necessarily, this will affect the price of Bitcoin.


The increase in the Bitcoin price that we have been experiencing since the beginning of this week is not unexpected. As I have just shown you, there are several reasons for this.

For several months now, the Bitcoin fundamentals have been steadily strengthening, and with the excellent news that is accumulating, among which we find the arrival of PayPal in the Bitcoin world, it is logical that the Bitcoin price is reacting with an important increase.

For the coming weeks and months, it is by remaining attentive to all these signals that you will be able to better understand the future evolution of the Bitcoin price.

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This story was first published on Voice