After boosted by new high, bitcoin bulls are aiming for the moon. There’s elation, euphoria, and then there’s the unbridled rapture that descends on Bitcoin’s intrepid bulls. When the cryptocurrency reaches a new high.
Bitcoin was trading at around $64,650 in Hong Kong at 11:30 a.m. on Thursday, after boosted by a new high overnight. The success of the first U.S. Bitcoin futures exchange-traded fund. The second-busiest ETF debut on record and another step in the currency’s evolution from the fringes of finance. To something with more mainstream appeal. Propelled the largest digital currency to a high of nearly $67,000 on Wednesday. In 2021, when boosted by a new high the cryptocurrency has increased 120 percent, and $100,000 is once again within reach for some believers.
as well-known for its wild price swings as Bitcoin has been. The cryptocurrency’s capacity to not only rebound but also hit new all-time highs or “ATH.” As Bitcoin brothers call them, they have perplexed skeptics and given bulls even more reason to rejoice.
Bitcoin Entered the Year 2020
Bitcoin entered 2020 as the best-performing asset of the previous decade. It increased by more than 300 percent last year and was on a roll at the beginning of this year. Before falling below $30,000 over the summer, when regulatory concerns from the US and China drove the crypto market down. Bitcoin then had a comeback as investors looked past China’s various prohibitions. Crackdowns became more confident that any future regulatory system in the United States would not suffocate the market. Some investors’ adoption of it as an inflation hedge has aided the increase as global consumer prices have risen.
With the off-the-charts demand for the ProShares Bitcoin Strategy ETF (ticker BITO). Cryptocurrency proponents predict more records to be set in the near future.
According to Sadie Raney, co-founder of crypto robo-advisor Makara, the industry atmosphere is really positive right now. “Bitcoin has a lot of momentum.”
The Bank of New York Mellon, Goldman Sachs Group Inc., and Morgan Stanley are among the firms offering crypto-related services. “Crypto has gone mainstream,” according to Soros Fund Management LLC CIO Dawn Fitzpatrick. Also attracted by the asset class is former Goldman Sachs CEO Lloyd Blankfein.
“Many things in our world have worked out quite well,” Blankfein remarked in a Bloomberg “Front Row” interview. The market isn’t prospering, but it hasn’t recently looked like it’s dying.
Average Return Rates
According to analysts at Forex Suggest, Bitcoin’s market cap might reach $5 trillion by the start of 2024. Based on historical returns for other assets, such as Faang equities like Facebook and Apple. That’s based on its 103.5% annual growth rate, they stated.
A lot hinges on how much support Bitcoin gets beyond $65,000, according to Leah Wald, CEO of Valkyrie Investments. Which has filed with the SEC for Bitcoin futures ETFs. Historically, the coin has sold off after new highs as traders booked profits. If it can hold that level, it means another leg higher.
“If the bullish momentum continues, $80,000 is not out of the question,” she said. ” I believe $100,000 this year is a tad ambitious, but everything is possible,” he said.
Some analysts have even projected $100,000-plus targets based on technical analysis of charts. Tom Lee of Fundstrat Global Advisors estimates BITO’s first year flows at $50 billion. He predicts that Bitcoin may reach $168,000.
Micheal Saylor, a notable Bitcoin supporter whose investing expertise is surpassed only by his media savvy. Has made one of the most public-facing moves. MicroStrategy Inc.’s CEO promised a bulls’ party if boosted by a new high Bitcoin ever hit $100,000.
The Coin has Sold off
However, if history is any guide, Bitcoin may fall in the coming days.
The coin has fallen in value since the CME listed BTC futures in December 2017 and Nasdaq listed Coinbase Global Inc. In April this year, according to Noelle Acheson, head of market insights at Genesis Global Trading Inc. After the initial rally, any disappointment with the futures-based ETF could trigger a drop.
“However, given where we are in the market cycle. A selloff is unlikely to be as deep or prolonged as prior examples,” Acheson added. “The market was already exuberant and showed signs of weariness in both previous cases – not this time.”