There is joy and delight, but unrestrained euphoria falls on determined bitcoin bulls when the cryptocurrency soars to a new record.
As of 11.30 am on Thursday, bitcoin was holding at around $64650 in Hong Kong trading after soaring to a new record overnight. On Wednesday, the largest digital currency peaked at almost $67,000, caused by the successful launch of the first American cryptocurrency exchange-traded fund (ETF) based on bitcoin futures.
In 2021, the cryptocurrency has grown by about 120%, and for some bulls, the $100 thousand mark has become a reality again. No matter how notorious bitcoin is for its sharp price fluctuations, the cryptocurrency’s ability not only to recover over and over again but also to reach new historical highs confuses skeptics and gives bulls reason to rejoice.
Bitcoin has entered 2020, being the most successful asset of the previous decade. Last year, the cryptocurrency grew by more than 300%; at e beginning of this year, it was also on the rise before a recession occurred in the summer when the value fell below $ 30 thousand.
Then bitcoin experienced a resurgence as investors became more optimistic that, whatever the political landscape in the U.S., it would not harm the market. The use of bitcoin investors as an inflation hedge, as consumer prices worldwide are rising, also played into the hands of the rally.
Now, when the demand for the ProShares Bitcoin Strategy ETF (ticker BITO) is off the scale, which further fuels hope for a wider spread of cryptocurrencies among institutional investors, bulls see new records in the future. “The mood in this industry is very high right now–” Sadie Rainey, the co-founder of Makara cryptocurrency Robo-advisor, said on Bloomberg’s “QuickTake Stock” program. “Bitcoin is very popular.” Enthusiasm has also increased on Wall Street: Bank of New York Mellon, Goldman Sachs Group, and Morgan Stanley offer services related to cryptocurrencies.
Dawn Fitzpatrick, a chief investment officer of Soros Fund Management LLC, said that her company owns bitcoins and that the cryptocurrency has “become mainstream.” Lloyd Blankfein, the former CEO of Goldman Sachs Group, is now among those who are intrigued by this asset class. “There are a lot of things in this world that have worked just fine,” Blankfein told Bloomberg’s “Front Row.” – A market that already exceeds $2 trillion, which faces many regulatory obstacles, which many people don’t like, still somehow exists.
And even if this market does not flourish every day, it never looked like it was dying.” Based on the average returns over the past three years for various assets, including the so-called FAANG shares and the value of gold, the researchers of the Forex Suggest platform have determined that by the beginning of 2024, the market value is the market value of bitcoin could reach $ 5 trillion.
In which direction bitcoin will on what kind of support it can find above $ 65,000, says Leah Wald, executive director of Valkyrie Investments, which, in addition to ProShares, is among the firms that have applied with the U.S. Securities and Exchange Commission (SEC) to issue ETFs for bitcoin futures.
As history shows, bitcoin usually goes into a sell-off after reaching new highs, as traders lock in profits. However, if the cryptocurrency can stay above this level, then further growth is quite possible. “If the bullish price may at a price reach $80 thousand–” she added. –I think the $100,000 target this year is too optimistic. Still, everything is possible, and I wouldn’t be surprised if we somehow get this far.” strategists who are trying to decipher the spot bitcoin-based of bitcoin-based on technical analysis of charts are already predicting goals of $ 100 thousand. Tom Lee of Fundstrat Global Advisors believes that in the first year of operation, BITO can raise $50 billion.
Bitcoin itself can reach the $168 thousand mark. However, one of the boldest steps is a famous sailor, a bull about bitcoin, whose investment acumen rivals only the media. The CEO of MicroStrategy Inc has promised to throw a party for bitcoin bulls if its price ever reaches $100 thousand.
Nevertheless, history shows that it is better to exercise some caution: bitcoin may roll back in the coming days. Noelle Acheson, head of market research at Genesis Global Trading, sometimes began sometime after such landmark events as the listing of BTC futures on CME in December 2017 and the listing of Coinbase Global on Nasdaq in April this year.
This time, any potential disappointment about the Bitcoin futures ETF could trigger a correction after the initial surge. “However, even if there is a sell-off, it is unlikely to be as deep or prolonged as in the previous examples since we are in a successful phase of the market cycle,” Acheson says. –In both previous cases, the market showed signs of exhaustion – this time the situation is different.”