Bitcoin is roaring back, bringing 100,000 predictions back into fashion

Bitcoin to $ 100,000. Bitcoin to the moon. Bitcoin to infinity.

The world’s largest cryptocurrency is making a comeback that has caught up from recent lows by more than 50 percent, resurrecting animal spirits and generating sky-high price targets that, while a source of comedy for some, emerge when the asset rebounds.

There are predictions that the digital currency was ready to retest $ 20,000 amid a string of negative headlines that many said would push it down. Back in vogue are calls for the coin to rally again to its all-time highs and beyond.

And there are plenty of superlatives to mark the moment: Bitcoin has risen for four weeks in a row and is on track for its second monthly advance. Overall, it posted its fastest 21-day lead since February, when it was last mid-jump towards records. Bitcoin remained largely unchanged in Asian trading, hovering around $ 45,530 at 10:36 a.m. in Hong Kong.

“It roars back,” said Meltem Demirors, chief strategy officer at crypto fund provider CoinShares, on the phone. Despite recent regulatory reviews, “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 is also being shown is that the crypto community is no longer an esoteric corner of finance. “

The cryptocurrency defies criticism of its impact on the environment and is moving forward, despite the promise of tougher crackdowns from regulators around the world. China, for example, has taken a number of steps to tackle crypto mining, among other things. In the US, policymakers are focusing on digital assets in new ways. The chairman of the US Securities and Exchange Commission, Gary Gensler, called the room the “Wild West” last week. He said he would not compromise on investor protection when setting a regulatory framework.

Strategists are tossing these worries aside for the time being and instead formulating rising price targets, which have long been part of the investment thesis behind entry into cryptocurrencies.

“There’s still plenty of room to hit the old high,” said Mike McGlone of Bloomberg Intelligence in a television interview. “And guess what? If it just follows Ethereum, it’s going to be $ 100,000,” he said, referring to the fact that Bitcoin was catching up as a percentage of the performance of the second token.

Fundstrat Global Advisors’ Tom Lee also sees it will hit $ 100,000 by the end of 2021. The company’s co-founder and chief researcher recommends that investors follow a simple rule: if bitcoin has been above its average price in the past 200 days – a long-term momentum measure – then it’s time to buy. The coin has overcome this hurdle in the last few days. “If Bitcoin crosses its 200D, we believe Bitcoin will spike,” Lee wrote in a year-end note.

The rally comes despite potential new tax reporting requirements. A change to the reporting rules for cryptocurrencies in the Congressional Infrastructure Act was blocked on Monday, leaving the language for comprehensive oversight of virtual currencies in legislation that was later passed in the Senate on Tuesday.

“Crypto will be an important source of taxes to finance infrastructure,” said Emilie Choi, President and Chief Operating Officer of Coinbase Global in a Bloomberg TV interview. “That is actually very positive. It is no longer a marginal matter, crypto has finally entered the mainstream here. That was a setback, there is no doubt about the past week, but we are playing the long game here. “

Kristin Smith of the Blockchain Association said she was surprised the coin was presented during the Infrastructure Bill debate – she thought the opposite happened.

“I don’t understand the prices; I thought prices were going down because of the bad language some out there were suggesting, “she said on Bloomberg’s” QuickTake Stock “streaming program on Monday before the provision was blocked. “People see the effectiveness that the crypto community and industry in Washington are having. And I think there is confidence that ultimately we will be able to get the guidelines right. “

It was certainly a “mistake” to link fundamental developments with Bitcoin’s movements, said David Donabedian, chief investment officer of CIBC Private Wealth Management.

“What drives them is momentum and money flows and a little bit of the general risk appetite and risk appetite in the markets,” he said. “Anything you say or write about Bitcoin can always be a big percentage – it’s up 50 percent, yes, but it’s down 50 percent from April to June,” he said, adding, “It there is no credible way of evaluating it ”. . “

It is inevitable. #Bitcoin

– Samuel | ⛏️₿⚡ | ∞ / 21M (amsamusalo) August 9, 2021

But fans watching the showdown in Congress saw it as an industry endorsement. On Twitter, some concluded that the community was strong enough to keep senators at bay, while others celebrated their rally and reiterated that it will go on indefinitely.

Other negative news has also been brushed aside for the time being. China recently reiterated its call to restrict bitcoin mining and trading, but Ethan Vera of Viridi Funds said it had turned out to be a positive development for Bitcoin.

“They banned it, but the network stayed pretty stable,” said the company’s co-founder and chief financial officer. “That shows the resilience of the entire network and how it is bigger than a single country.”

Comments are closed.