According to analysts who spoke to Bloomberg, bitcoin price rally could be starting. The coin was trading at $29,000 on Sunday, a few points below the important resistance point at $30,000 and slightly lower than the year-to-date high of $31,000.
Bitcoin price path to $100k and above
Last week, I wrote that a Standard Chartered analyst was predicting that Bitcoin could surge to $100k in the next few months. He was not alone. Another Bloomberg analyst said that BTC would hit $50,000 as enthusiasm about halving builds up.
Now, Bloomberg has revealed more Bitcoin price predictions. In a report, the company said that Bitcoin could jump to $105k. The analyst noted the fact that BTC has now jumped in the past four straight months. The last time that happened led to a 260% increase. As a result, if that happens today, it would mean that the coin will hit $105k.
Some analysts believe that Bitcoin price could jump much higher than that. For example, an analyst at BCA said that BTC could jump to $160,000 if its market cap approached 25% of gold. Notably, Bloomberg Intelligence’s Jamie Douglas said that Bitcoin could jump to $185,000 if just 1% of global bond market value moved to the coin. This is highly unlikely for now though.
Bullish catalysts for Bitcoin
There are numerous bullish catalysts for BTC prices. First, there are signs that the banking crisis is still here as First Republic Bank nears its collapse. And with many regional banks having loads of commercial real estate exposure, there is a possibility of more collapses. In a statement to FT, Charlie Munger said:
“It’s not nearly as bad as it was in 2008. But trouble happens to banking just like trouble happens everywhere else. In the good times you get into bad habits . . . When bad times come they lose too much.”
Second, analysts are citing Bitcoin’s rarity since it has a supply cap of 21 million coins and most of them have been mined. Third, they note that it is a good alternative for gold, which is widely seen as a hedge against inflation. Finally, Bitcoin seems to be in a cycle ahead of next year’s halving. In a note, an analyst said:
“Crypto markets have cycles, too, only these in the past have been driven mainly by crypto-specific factors. Not any more – now the crypto market has multiple drivers, making the narratives more complex while opening up the market to new investing cohorts.”
If these analysts are accurate, then it means that other altcoins have a long runway for growth because of the correlation that exists. This is a positive thing for the likes of Solana, Ethereum, Stellar, Cardano, and Litecoin.
Invest in the top cryptocurrencies quickly & easily with the worlds largest and most trusted broker, eToro.
81% of retail CFD accounts lose money