There’s euphoria and euphoria, and then there’s the rampant ecstasy that descends on emboldened Bitcoin bulls every time the cryptocurrency soars to a new high.
As notorious as Bitcoin has been for its price swings, the cryptocurrency’s ability time and again not only to rally but to hit new all-time highs, or “ATH,” as the Bitcoin brethren say, has confused skeptics. and has given the bulls more to cheer.
Uptober leads to Moonvember leads to Bullcember, I don’t make the rules, I just say what it’s like. #bitcoin
– Lark Davis (@TheCryptoLark) October 15, 2021
Bitcoin entered 2020 having been that of the previous decade. high perfomance active; It gained more than 300% last year and was also on a roll earlier this year, before sliding over the summer, when regulatory concerns from the US to China sent crypto plummeting below $ 30,000. Bitcoin then staged a resurgence as investors overcame various bans and crackdowns outside of China and became more optimistic that any looming US regulatory regime would not stifle the market. Its use as an inflation hedge by some investors has also contributed to the rally, as consumer prices around the world have risen.
Now, with the unusual demand for the ProShares Bitcoin Strategy ETF (BITO ticker) further fueling expectations of wider adoption by institutional investors, crypto advocates see more records in the offing.
NEW ATH! pic.twitter.com/IBzDbZQYCe
– Mr. Anderson (@ TrueCrypto28) October 20, 2021
“Right now, sentiment is really high in this industry,” Sadie Raney, co-founder of crypto robo-advisor Makara, said on Bloomberg’s “QuickTake Stock” streaming show. “There is a lot of momentum behind Bitcoin.”
Excitement has risen in some corners of Wall Street: Bank of New York Mellon Corp., Goldman Sachs Group Inc., and Morgan Stanley are among the companies offering crypto-related services. Dawn Fitzpatrick, chief investment officer at Soros Fund Management LLC, said her company has some currencies and that cryptocurrencies “have gone mainstream.” And now you can also count Lloyd Blankfein, former CEO of Goldman Sachs Group Inc., among those intrigued by the asset class.
“There are many things in this world that have worked very well,” Blankfein said in a Bloomberg interview on “Front Row,” adding that he is open to cryptocurrencies. “To come out and say that a market that’s already over $ 2 trillion, facing all these regulatory headwinds, that a lot of people really don’t like and would enjoy seeing crushed, somehow is – every day, it’s not. thus’ It seems that it is blooming, but no day has recently seemed that it is dying. ”
Based on average rates of return over the past three years for a variety of assets, including so-called Faang stocks such as Facebook Inc. and Apple Inc., as well as the price of gold, researchers at the Forex platform suggest that Bitcoin could hit the $ 5 trillion of market value in early 2024. That’s based on its average annual growth rate of 103.5%, they said in a report.
Bitcoin’s next destination depends on how much support it can find above $ 65,000, said Leah Wald, CEO of Valkyrie Investments, which is among the firms other than ProShares that have filed with the SEC to issue ETFs. of Bitcoin futures. In the past, the coin tended to sell after new highs as traders made profits. If it can stay above that level, then all signs point to another higher leg.
“If the upward momentum continues, it is not out of the box to hit $ 80,000,” he said. “I think $ 100,000 this year is a bit optimistic, but anything is possible and I wouldn’t be surprised if we somehow pushed that far north.”
Some strategists, looking to decode potential Bitcoin moves based on technical chart analysis, have already been projecting targets of over $ 100,000. Tom Lee of Fundstrat Global Advisors says that BITO could attract $ 50 billion in flows in the fund’s first year. Bitcoin itself could hit $ 168,000, it predicts.
Among the boldest moves, or at least most in the public eye, is one by Michael Saylor, the famous Bitcoin believer whose investing acumen only rivals his knowledge of the media. The CEO of MicroStrategy Inc. promised to call a party for the Bitcoin bulls if its price reaches $ 100,000.
The halls of eternity echo with the cries of those who sold their #bitcoin.
– Michael Saylor⚡️ (@saylor) October 20, 2021
Still, if history is any guide, some caution should be exercised; Bitcoin could pull back in the next few days.
The coin sold after seminal moments past, including BTC’s futures listing on the CME in December 2017 and Coinbase Global Inc.’s listing on Nasdaq in April this year, says Noelle Acheson, director of market information at Genesis Global Trading Inc This time around, any potential disappointment about the futures-based ETF after the initial rally could trigger a correction.
“However, even if there is any selloff, it is unlikely to be as deep or as long-lasting as the previous examples due to where we are in the market cycle,” Acheson said. “In the two previous cases, the market was already sparkling and showing signs of exhaustion, that’s not the case this time.”
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