Bitcoin price continues to set new records after breaking the $ 34,000 mark. Some experts believe that Bitcoin’s bullish momentum has not stopped.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price exploded, going straight to a record $ 35,000
According to Bloomberg, Bitcoin was up 7.8% to $ 34,182.75 before turning down slightly to $ 33,970. Thus Bitcoin price has increased by a half in December. Just over two weeks before, Bitcoin price exceeded $ 20,000 for the first time. Currently, the value of this coin has set a new record of over $ 33,000.
In March, when the Covid-19 pandemic reached its peak, prices fell by up to 25%, but by the end of the year, it skyrocketed again. Bitcoin has gained more than 300% in value in 2020 and continues its momentum in 2021.
Since Bitcoin’s market cap hit $ 1 billion in March 2013, the cryptocurrency has had two record peak cycles that were both after the Halving event and before losing 80% of its value.
Scott Minerd, chief investment officer at Guggenheim Investments, thinks Bitcoin’s price will reach $ 400,000. Raoul Pal, CEO of Real Vision optimistic forecast, the world’s leading cryptocurrency will reach $ 300,000 in just 18 months.
According to Antoni Trenchev, co-founder of Nexo, the company claiming to be the largest digital lender in the world, Bitcoin price could reach $ 50,000 in the first quarter of 2021. Predicting Bitcoin by 2021, StoneX’s director of global macro strategy Vincent Deluard affirms that Bitcoin is likely to continue to be one of the winning assets.
According to the assessment, institutional investors will return after the holiday and can energize the uptrend. In the last holiday, prices have been supported by purchasing power from retail investors.
Many optimism comes with risks
Fixed supply at 21 million, expected to be reached by 2140, is one of the most often given reasons to argue that prices will inevitably arise. However, many factors are supporting this virtual currency.
The US Federal Reserve and the central banks of countries loosening their currencies to minimize the economic consequences of the epidemic also helps Bitcoin benefit. Since this is seen as a catalyst for inflation, it could pin the price of the USD, thereby pulling Bitcoin up.
Besides, global political turmoil, the impact of epidemic diseases, and Brexit concerns are also believed to help investors look to Bitcoin.
Mike McGlone, an expert at Bloomberg Intelligence, said that Bitcoin remains a safe haven in the context of central banks massively printing money, even when inflation remains low.
However, OANDA senior market analyst, Edward Moya, said that bitcoin’s dizzying rise in value will turn the cryptocurrency market into a “bubble” that can explode at any time. Besides, there is still a lot of uncertainty about how Bitcoin will evolve in the future.
Investors should be cautious because Bitcoin is still an unrecognized cryptocurrency and a market with too low liquidity. On November 26, the currency fell 14% due to warnings that the crypto market is about to enter a correction. In 2017, after soaring, the price also dropped by 83%.
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