At the moment of writing, Bitcoin is trading at a max price of around $23,400. In the last 24 hours, it has risen by over 20%.
Bitcoin (BTC) has hit a new milestone: its price has passed $23,000 for the first time in history. It happened not long after the coin broke the psychological $20,000 threshold. Now many market participants wonder: what’s next? Will Bitcoin price stop at this max or new highs are ahead?
Bullish Predictions on Bitcoin’s Future
CoinRoutes CEO Dave Weisberger and “The Case for People’s Quantitative Easing” author Frances Coppola believe that Bitcoin’s rally will attract more institutional investors. They both concede the currency’s price may fall again, presenting a buying opportunity, however, there will be a new support level.
Dave Weisberger said:
“Today’s price action, in particular, is instructive. There was (supposedly) a “wall of sellers” at $20,000, but those were not “natural” sellers that had bought at that previous price. Rather, they’re speculators betting against the price getting through that level. The result was an immediate pop, as those short-sellers covered. What happens next is anyone’s guess, as it could fall below that level again. I suspect $20,000 will form a new support level unless there is actual negative news.”
Further, they spoke on Bitcoin dependence on monetary and fiscal stimulus. According to Frances Coppola, cryptos are attractive as inflation hedges. And next year, Bitcoin’s performance will be determined by fiscal and monetary stimulus and interest rates.
“Bitcoin’s strength relies very much on fiat money being copious and unrewarding. If central banks tighten monetary policy and/or governments take action to reduce deficits, the attractiveness of Bitcoin as an inflation hedge and source of scarce yield could decline rapidly.”
Both Coppola and Weisberger believe that Bitcoin could easily replace gold and function as a reliable store of value. However, it is unlikely to become a new dollar.
“There’s a small minority of holders who believe Bitcoin will eventually replace the dollar. These people are holding for the long term, and their faith helps to prevent Bitcoin falling to zero in its frequent crashes. I personally think Bitcoin replacing the dollar is a pipe dream.”
Other Prognosis for BTC
According to Alex Mashinsky, Celsius Network CEO, this level is temporary. He said:
“Settle in, because we will be visiting the $20-$22K level at least half a dozen times before we break through to the $30K range later in 2021. I do think we will also re-test the $14-16K levels either over a weekend with low volume or with bad news hitting the street. That will probably be the last time most of us will have a chance to buy bitcoin below $20K levels ever again.”
At the moment of writing, Bitcoin is trading at a max price of $23,400. In the last 24 hours, it has risen by over 20%.
The current market capitalization is $423 960 769 301 which means that for the first time in its history the market cap of BTC has gone over $400 billion.
Meanwhile, Ethereum has also set a new record since 2018. Its current price is $650 which means that it has added 11% in 24 hours.
Daria is an economic student interested in the development of modern technologies. She is eager to know as much as possible about cryptos as she believes they can change our view on finance and the world in general.