Is Bitcoin Ready for a New Upward Movement?
Crypto fans are in high spirits after the price of a coin with a stellar reputation has come nearer to the $52,000 mark. This immediately gave rise to a lot of conversations about a new all-time high. Has the bull market been revived? Let's find out what analysts think about this, it's interesting.
Reason for Changes
The crypto land has received great news: on the morning of September 6, the price of the main cryptocurrency crossed the $51,000 threshold. According to Santiment, a behavior analytics platform for crypto, one of the reasons for the latest wave characterized by the strengthening of the BTC price is the growing interest of the part of users in altcoins.
Unemployment in the United States also played a role. It is believed that its rate is declining not fast enough, and the Federal Reserve will have to pursue a policy of quantitative easing for longer and not raise the key rate. This supports the quotes of risky assets, including the crypto market.
People are also optimistic about the news that Vast bank will be the first commercial bank to offer its customers the possibility to make transactions in cryptocurrency (what can displace traditional banks in the future, find out here).
Looking to the Future
- Mike McGlone, Bloomberg’s senior commodity strategist, is of the opinion that virtual currencies are ready to flourish. Bitcoin and Ether can break a new record high. In his opinion, the price of BTC has every chance to soar to $100,000, ETH - to $5,000. This is reported in the September edition of Crypto Outlook Bloomberg. What is more, he believes that the crypto firstborn is on the way to becoming a global reserve asset that will complement the US dollar (can BTC become an alternative to the dollar, read in our article).
- The rising trend of crypto may continue until the Federal Reserve System announces a rate hike, says Artem Deev Head of Analysis at AForex. A professional trader and investor with many years of experience thinks that due to the weak recovery of the US economy, the Federal Reserve may extend promotional measures and not cut the asset purchasing program next year. So, according to his forecast, the value of decentralized super-organism will increase by 25-50%.
- The growth of the flagship cryptocurrency will be supported by news about the upcoming upgrade (Taproot will be launched in November this year) and the absence of a strong negative from regulators, according to the head of the data analysis department CEX.IO Broker Yuri Mazur. In his view, the current quotes of the virtual currency reflect the persistence of bullish attitudes in the market and the desire of participants to return the price of the digital cash to values of about $60000 and then update the historical maximum.
- Nevertheless, not all analysts are optimistic. Sergey Ordin, the marketing department manager, who made a great contribution to the popularization of the ROY Club, is the most important example in this regard. In his opinion, the most famous cryptocurrency is unlikely to reach the six-digit number in 2021. According to his forecasts, bitcoin will increase to a maximum of $80,000 and there are good reasons for this. First, the regulation of crypto in America will clearly be tightened and it is still unknown what it will be. Stronger regulation on one of the largest digital asset markets means a blow to the industry. The second reason is the uncertainty in the market after the Chinese ban. Now it is unclear how the BTC hashrate will recover and mining will be distributed across the world regions, who will become the leader.
Forecasts are a thankless nightmare, but different opinions and views allow us to put things in perspective and take a larger movement than we initially counted on.
Whether to listen to the analysts is up to you. Remember that no one – neither a person nor graphs can envision the future. But what you can always do is monitor events taking place in the crypto industry. The easiest way to do it is to follow us on: Twitter, Facebook, or Telegram.