Bitcoin’s steady rise throughout 2020 has shifted into high gear. It recently broke above $ 18,600 and bullish analysts are predicting that $ 20,000 and a new all-time high is in its future. Unlike 2017, this time around bitcoin and crypto are also winners converted among notable investors and Wall Street analysts.
The CEO of $ 12 billion wealth advisory DeVere Group, Nigel Green, noted at Forbes Wealth Management Summit last week that Many investors are now looking to Bitcoin as a ‘legitimate hedge against long-term inflation issues., which emerged due to stimulus packages, “Green added on Wednesday. Bitcoin is even gaining converts among previous skeptics, including DoubleLine Capital CEO Jeffrey Gundlach, who noted that” Bitcoin did of me being an honest man in 2020. ”Even Ray Dalio, the hedge fund billionaire who expressed his skepticism about the crypto asset, noted that “Maybe I am missing something about Bitcoin, so I would like to be corrected.” Finally, a report leaked by the Wall Street giant Citibank revealed that senior analyst believes bitcoin could potentially reach $ 318,000 by December 2021, calling it “the gold of the 21st century”.
That said, not everyone was won over, as Bitcoin skeptic Jamie Dimon of JPMorgan noted.
It’s also worth noting that Ether just spent $ 500 for the first time since 2018. Although it remains over 50% below its all-time high of $ 13,444, the second-largest cryptocurrency begins to gain momentum after the frenetic DeFi summer. Just like bitcoin, network analyzes indicate a healthy market , and hope is growing that the long-awaited transition to a more scalable upgrade will begin shortly.
… BUT DON’T BE SURPRISED IN CASE OF A TEMPORARY RETURN
That said, as bitcoin approaches these high prices, some analysts warn that a near-term bitcoin price correction could be imminent-with an analytics company predicting bitcoin could soon drop to just $ 14,000.
However, the long-term uptrend is driven not only by the increasing level of institutional adoption, but also by the short-term squeeze in liquidity brought on by Bitcoin’s mining reward halving in May 2020. Philip Gradwell of Chainalysis note, This growth in demand responds to declining supply as fewer bitcoin holders are willing to sell, with the supply of liquid and available-for-buy bitcoin as low as it was in mid-2017, ahead of the previous bull run. “
Additionally, Many fundamentals and analysis of Bitcoin’s core network remain strong, which underlies the belief that this bull run will be more sustainable than the last. Five key indicators to watch include foreign exchange balance / net foreign exchange flows, corporate cash balances, changes in Google search trends, active offer / coin dormancy, and perpetual term finance rates.
CRYPTO PRIVACY IS AT THE FOREFRONT
The main ‘privacy coin’ zcash, which seeks to serve as a privacy-centric alternative to bitcoin (it also has a fixed cap of 21 million units) has just undergone its first “halving”. Occurring at 7:37 a.m. EST on Wednesday, November 18 zcash managed to reduce its mining rewards from 6.25 ZEC to 3.125 ZEC per block. Annual inflation also subsequently fell from around 25% to around 12.5%.
This event could have a dramatic impact on the price of zcash, because cryptocurrencies tend to perform well shortly after the event. Measured from six months before the event to six months after it, the main assets with an event divided by two recorded an average gain of 78%. In addition to this development, a “wrapped” version of zcash is now available on Ethereum so people can take advantage of DeFi applications to earn return on their holdings.
A NEW HISTORIC TOP FOR BITCOIN?
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