Are you not happy that you kept this Bitcoin? I know I am.
Even with the recent drop from its highs approaching $ 20,000, investors have been bullish. Is it going to $ 50,000? Nope. It goes to $ 500,000, some on the street have told me (hint: she runs a big innovative ETF). It’s the wild speculative predictions that make Bitcoin what it is. But keep it. Even if it comes down to $ 5,000. We have seen that what comes, goes around.
It took over 1,000 days for Bitcoin to hit its previous record high, recorded in December 2017.
“We are buyers at this price because we believe that Bitcoin will appreciate in the short, medium and long term”, says Daniel Wolfe, fund manager of the Simoleon Long Term Value Cryptocurrency Fund, which he manages in partnership with SPRING, a Moscow-based investment firm. “Taking a three to five year view and an average dollar cost in a position that represents about 5% of your portfolio is prudent today.”
Okay, but are we still taking off? You know, that Bitcoin Moon thing.
“The next nine months will bring substantial appreciation to Bitcoin,” Wolfe thinks. “I wouldn’t be surprised to see $ 50,000 next summer. Within four years, we expect the capitalization of all cryptoassets to increase fivefold, with Bitcoin at $ 100,000, ”he told me last week.
There are a number of factors behind Bitcoin’s boom this year. Microstrategy
The availability of an infrastructure at the institutional level facilitated their entry: Fidelity’s custody solution is one example. Second, the so-called halving of the BTC reward (since May 11 each block carries a 6.25 BTC reward instead of the 12.5 BTC reward before the halving) means that one more much of the new demand has to be met on the open market, because miners cannot continue.
Historically, the halving led to a further peak in the BTC price 13-15 months after the BTC reward was reduced.
Buying and holding BTC has become easier for retail investors. Pay Pal
“I think the reason for the growth is the dollar, which we expect to weaken against other reserve currencies. All respectively stable assets and properties are the most attractive investments, ”said Nikita Zuborev, Marketing Manager at BestChange.com, a Russian free interchange aggregator, 13 years old.
“The cryptocurrency market has changed,” Zuborev says. Numerous derivatives, futures and options have been launched in recent years. Bitcoin has gained a significant share of the crypto trading market. “Despite the ‘DeFi fever’, it holds a dominant position unlike the trends of 2017 when the previous price record was set,” he says.
“DeFi” means decentralized funding, or peer-to-peer funding done on a blockchain ledger that eliminates middlemen – typically banks and brokers.
Bitcoin’s astonishing run this year is also due to the arrival of new funds, says Benjamin Duval, CEO of 4C-Trading and UpBots, a Swiss trading interface for cryptocurrencies, DeFi, forex and commodities. located in Zug, Switzerland. “There is a more stable market with more advanced projects … with long-term solutions offered by DeFi for example,” he says. The growth of this segment of crypto, or rather – its promise – prompts investors to keep their capital invested instead of selling it in hard currencies.
“Three years ago, in November and December, Bitcoin jumped to $ 20,000 – and the reason was human greed. There was no widespread application of the technology that could justify this growth, ”says Gapporov Behkzod, CEO of Okschain, a next-generation decentralized financial service using crypto. “People were looking to go fast and got lost in panic a lot,” he says of those heady days in 2017.
“Bitcoin is still at the beginning of its history,” says Behkzod. “There is more growth and corrections to come. I won’t try to make a prediction, but I guess we’ll see a Bitcoin price of $ 1,000,000 – and that’s not a limit. Many of our colleagues who work with large volumes on a daily basis are already talking about it, ”he says. “These are the guys who have the vision.”
Regulations are also progressing. This has always been a sticking point for those who wanted to make cryptocurrency a real industry. They wanted more transparency and novelty, which was a sticking point before larger funds came in.
All the elements are coming together now, says Duval from Switzerland. “Even if a price drop occurs in the coming weeks, 2021 is expected to see a new peak for virtual currencies and it would not be surprising to see Bitcoin hit the $ 50,000 to $ 80,000 mark,” he says. .
In some ways, the pandemic has underscored the need for market-resistant investment opportunities in 2021. What started as a demand for interest rates against inflation has now grown into a deeper need for growth and security. .
“People want to diversify into alternative investments and cryptocurrencies offer everything from guaranteed loans to store of value protection to forex-style trading,” says Chris Roper, communications manager for the alternative finance start-up, MyConstant. They matched $ 16.6 million in crypto-backed loans – their core business – in the third quarter of this year. It was a record quarter for them.
Paypal will make Bitcoin a household name, Roper says. “You will get a new generation of investors in the crypto-ecosystem looking for growth in tough economic times.”
If Bitcoin seems overpriced, there are always the other two darlings in the crypto world – Ripple XRP and Ethereum, priced at $ 0.51 and around $ 571, respectively.
“Alternative coins usually follow the movement of Bitcoin’s price, but the difference is that it’s easier to have a speculative effect on them – so sometimes we’ll see a difference in the charts,” says Oleg Fakeev , a well-known crypto. investor and founder of Kit Investments, a crypto investment community. “The superiority of Bitcoin’s capitalization over other coins is one of the few factors that protects it from constant manipulation by big players,” he says.
The creator of Ethereum, Vitalik Buterin, born in Russia, remade the smart contracts used by Ethereum, but explaining that it is well above my salary. Crypto investors were excited about this. Even Tim Pool was talking about this weekend on his YouTube show.
“Interest is definitely increasing,” Fakeev says of cryptocurrencies in general, not just Bitcoin. “Markets are swapping audiences – those who have only invested in cryptocurrencies have gone public, and stock market investors, having ensured that Bitcoin has survived ‘the test of time’, are beginning to invest in crypto-currencies. “
Behkzod, however, believes the crypto man of the year to be fellow Russian Buterin.
“If there were no Ethereum smart contracts, I think there would be a collapse in supply and demand (crypto),” he says. “Ethereum will develop further in the future. It will grow, ”he said. “I’m the same goals as Buterin at Okschain,” he says, hoping that some of that resurgent crypto pixie dust could rub off on him and what is apparently an eruption of new investors rediscovering what was once almost left for. dead.
“The crypto winter” seems to have ended, ”Roper says. “It’s an exciting time with the entry of Square and Paypal. The industry is maturing. “