Towards the Moon? Bitcoin Comes Back in Force, Fueling $ 100,000 Predictions

Towards the Moon? Bitcoin Comes Back in Force, Fueling $ 100,000 Predictions

Bitcoin at $ 100,000. Bitcoin to the moon. Bitcoin to infinity.
The world’s largest cryptocurrency is staging a comeback that has surpassed it by more than 50% from recent lows, rekindling animal spirits and cuddling super-high price targets which, although a source of comedy for some, emerge when the asset rallies.

There are predictions that the digital currency was ready to retest $ 20,000 amid a slew of negative headlines that many believed would bring it down. Back in vogue, calls for currency to continue rallying to its all-time highs and beyond.

And there are plenty of superlatives to mark the moment: Bitcoin is up four weeks in a row and on track for its second monthly advance. Overall, he had his fastest 21-day advance since February, the last time he was breaking records.

“It’s coming back in force,” Meltem Demirors, chief strategy officer at crypto fund provider CoinShares, said by phone. Despite a new regulatory review, “Many investors see this as positive news and a positive catalyst, because it removes much of the confusion or some of the uncertainty. And I think what’s also being shown is that the crypto community is no longer an esoteric corner of finance. “

The cryptocurrency defies criticism over its impact on the environment and is making headway even as regulators around the world promise tougher crackdowns. China, for its part, has taken a number of steps to crack down on crypto mining, among others. In the United States, policymakers are focusing on digital assets in a new way, with United States Securities and Exchange Commission Chairman Gary Gensler last week calling the space “Wild West.” . He said he would not compromise on investor protection by establishing a regulatory framework.

Strategists put those worries aside for now and instead present rising price targets, which have long been part of the investment thesis behind the entry into cryptocurrencies.

“There’s still a lot of room to get the old high,” Bloomberg Intelligence’s Mike McGlone said in a TV interview. ” And guess what? If it just follows Ethereum, it goes to $ 100,000, ”he said, referring to Bitcoin’s catching up, as a percentage, against the performance of the second token.

Tom Lee of Fundstrat Global Advisors also sees it hitting $ 100,000 – by the end of 2021. The company’s co-founder and head of research recommends investors follow a simple rule: if Bitcoin exceeds its average price over the years. Last 200 days – a long measure of forward momentum – then it’s time to buy. The coin has cleared this hurdle in recent days. “With Bitcoin going above its 200D, we think Bitcoin will rally strongly,” Lee wrote at the end of the year in a note.

The rally above $ 46,000 comes even despite potential tax reporting requirements. A change to the cryptocurrency reporting rules in the Congress Infrastructure Bill was blocked in the Senate on Monday, leaving language for broad oversight of virtual currencies in legislation expected to be passed by the Senate.

Bitcoin slashed gains on Tuesday after hitting the highest since mid-May. Still, Kristin Smith of the Blockchain Association said she was surprised the coin moved forward during the infrastructure bill debate – she believed the opposite would have happened.

“I don’t understand the prices. I thought prices would drop because of the foul language suggested by some, ”she told Bloomberg’s“ QuickTake Stock ”streaming program on Monday before the layout was blocked. “People see the efficiency of the crypto community and the crypto industry in Washington. And I think we are confident that we will eventually be able to adopt the right policies. “

Certainly, linking fundamental developments to one of Bitcoin’s moves has been a “mistake,” said David Donabedian, chief investment officer of CIBC Private Wealth Management.

“What drives him is the momentum and the flow of money, as well as a bit of an overall sense of risk in the markets,” he said. “Anything you say or write about Bitcoin, you can still make a big percentage of it – it went up 50%, yes, but it went down 50% from April to June,” he said, adding “there is no credible way to assess it.” “

But fans watching the showdown in Congress came to see it as an industry validation. On Twitter, some deduced that the community was a force powerful enough to defeat Senators, while others feasted on its rally, reiterating it would go on and on.

Other negative news has also been ruled out for now. China had recently reiterated its call to restrict Bitcoin mining and trading, but Ethan Vera of Viridi Funds said this has turned out to be a positive development for Bitcoin.

“They banned it, but the network has remained fairly stable,” said the company’s co-founder and CFO. “This kind of shows the resilience of the whole network and how much bigger it is than a single country. ”


Please enter your comment!
Please enter your name here