In the past 24 hours, BTC has soared to a relative high of around AU $ 49,200
- Despite the recent turmoil, institutional Bitcoin backers have not dumped their holdings.
- Celsius CEO believes Bitcoin can still close the year at around AU $ 212,000
- With miners continuing to leave China, analysts expect the difficulty of mining Bitcoin to drop to record levels in the coming weeks.
After weeks of sustained downward pressure, the digital asset market appears to be showing solid signs of recovery again. In this regard, Bitcoin, the world’s largest cryptocurrency by total market capitalization, is currently in the green for the past week, with gains of over 8%. At the time of going to press, BTC is trading for $ 48,800.
For a better view of the future of flagship crypto, Finder reached out to Ross Middleton, Chief Financial Officer of DeversiFi, a suite of proprietary and third-party cryptocurrency-based financial instruments. From his point of view, there is no doubt that Bitcoin will close the year extremely strong, especially as short-term sellers continue to “run out of ammunition”. He added:
“The number of big owners is increasing every day, high profile new entrants are not selling (Tesla, Microstrategy) and the longer the Bitcoin base is built at $ 30,000, the more likely confidence will return to the market sooner rather than later at the moment after a wild 12 months on vacation, but new capital from discerning investors will flow into the room, it just takes time. ”
Middleton’s sentiment was recently confirmed by Alex Mashinsky, CEO of banking and financial services platform Celsius. In a recent media appearance, he claimed that despite recent sluggishness, the value of Bitcoin could fluctuate slightly in the $ 160,000 range by the end of 2021.
Additionally, he pointed out that after BTC recently rose to its all-time high of over $ 63,000, it was only a matter of time before a massive correction was seen across the board. “If you go too high, too fast, you have to make a correction. You can see [that] in my tweets in March and February. I predicted $ 30,000, ”he concluded.
How do I buy bitcoin
A look into the future
As the price of Bitcoin continues to show increasing support in the AU $ 46.5k area, analysts such as David Puell, on-chain analyst and creator of the Puell multiple equation, claim that Bitcoin only recently received its “fifth buy-signal ever” has shown its decades of history.
As a quick refresher, the Puell multiple equation is intended to look at and analyze the supply aspect of the global Bitcoin economy – especially the income from mining. It studies the market cycles in detail and enables investors to make more informed decisions when trying their hand at short and long term trading.
Last but not least, it should be noted that in view of the mining purge that went into effect in China a few weeks ago, a number of large mining companies have either been forced to close their operations or relocate to other countries. But that’s not all. Due to the ongoing exodus, many analysts believe that BTC could face the biggest decline in mining difficulties ever in the coming weeks.
Interested in cryptocurrency? Learn more about the basics with our beginner’s guide to Bitcoin, delve deeper by learning more about Ethereum, and see what blockchain can do with our simple guide to DeFi.
Disclosure: The author owns a number of cryptocurrencies at the time of writing
Disclaimer: This information should not be interpreted as endorsing the cryptocurrency or any particular provider, service or offer. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve considerable risks – they are very volatile and sensitive to secondary activities. Performance is unpredictable and past performance is no guarantee of future performance. Take into account your own circumstances and seek your own advice before relying on this information. You should also review the nature of a product or service (including its legal status and relevant regulatory requirements) and check the websites of the relevant regulators before making a decision. The finder or the author may have holdings of the discussed cryptocurrencies.