Bitcoin is up this year, rising to around $ 60,000 and helping the broader cryptocurrency market reach a staggering $ 2 trillion.
Bitcoin’s price has skyrocketed about 400% since its last bullish rally, when the long-awaited institutional rollout began, and Tesla billionaire Elon Musk drove the cryptocurrency market frenzy.
Now that many Bitcoin and crypto analysts are trying to determine where the top of the market will be, Bloomberg The analyst predicted that bitcoin’s price could reach $ 400,000 this year, although Musk seems to be more interested in bitcoin’s “playful” rival dogecoin.
“The technical outlook for Bitcoin in 2021 will remain strongly bullish if past patterns repeat itself,” wrote Mike McGlone, senior commodities strategist at Bloomberg Intelligence, in his April market report, arguing that Bitcoin “is on the same basis as an approximately 55-fold increase in 2013. and 15x in 2017 ”.
“To reach price extremes like those years in 2021, the cryptocurrency must approach $ 400,000, based on regression from the 2011 high. In September, the cryptocurrency’s 180-day volatility was roughly in line with the all-time low since October 2015. average monthly price, bitcoin has grown by just over 50 times to its peak in 2017. “
Bitcoin price has already doubled in the first three months of 2021, rising from just under $ 30,000. Bitcoin’s violent rally made it a $ 1 trillion asset and catapulted it into mainstream adoption.
According to McGlone, 2021 could “rhyme” with 2017 and 2013, because they all follow years when the supply of bitcoins was cut in half by a so-called halving, when the rewards received by those who defend the bitcoin network were halved.
“The year after the supply cut (halved) is what 2021 has in common with 2017 and 2013, along with reduced volatility. Initial support is approximately $ 44,000 through March 25th. ”
Meanwhile, Tesla’s recent $ 1.5 billion bitcoin purchase could be a “tipping point” for bitcoin, triggering a shift towards “risk aversion.”
“From our point of view, equity growth, partial diversification into bitcoin, is logical,” McGlone wrote.
This is corroborated by a poll conducted this week, which showed that institutional investors and asset managers expect an increase in the number of companies adding bitcoin to their treasury reserves.
A study commissioned by Nickel Digital Asset Management found that over the next two years, 81% of investors and managers surveyed expect an increase in the number of corporations using bitcoin for their treasury reserves.
“A growing number of corporations, including car manufacturer Tesla, business intelligence firm MicroStrategy and mobile payment processor Square, have recently made non-trivial multi-billion dollar allocations of bitcoin as part of their treasury strategies,” said Nickel Digital Asset Management chief executive. chief executive Anatoly Krachilov said in a statement along with the study.
“This, combined with the announced structural distribution of cryptoassets by the world’s leading asset managers including Paul Tudor Jones, Bill Miller, Raffer and Guggenheim Partners, is a huge endorsement of the new bitcoin saving functionality.”