Bitcoin momentarily reached above $9K. However, this rally was short-lived as it marched back to around $8,600 range shortly after. It was able to reach $9,084 which is the highest price for Bitcoin since last May 10, 2018. As of writing, Bitcoin is currently floating around $8,263.
Now, the next question is whether or not Bitcoin is headed back to $9K or beyond? Maybe 10K? Mike Novogratz, who is the chief executive officer of Galaxy Digital, believes that there will be consolidation and it will be a narrower trading range.
He mentioned that “On a go-forward basis, Bitcoin probably consolidates somewhere between $7,000 and $10,000. You know, trees don’t grow to the sky”. He also added that “If I’m wrong on that, I think I’m wrong to the upside, that there’s enough excitement and momentum that it could carry through”.
The Role of Whales
It is no secret that in the last months, whales have been involved in the rise of Bitcoin. According to Travis Kling who works as the Founder and Chief Investment Officer of Ikigai Asset Management, he believes that there is a chance of coming back to near $20K level. In fact, there are those who even believe that $20K this year is a relatively conservative prediction.
Kling believes that there is a small group of what he calls “risky whales” that could affect the market. On April 1st, he even mentioned that “We believe a relatively small number of highly sophisticated, well-capitalized, highly risk tolerant market participants have been walking this crypto market higher over the last seven weeks”.
Big Players Involved
Just how interested are the big players this time around? According to Dadiani Syndicate, they’ve reported that there was a client that approached them planning to acquire 25% of Bitcoin supply. This was the same company last year that made news when it sold 49% of Andy Warhol’s work 14 Small Electric Chairs” using for Bitcoin and other cryptos.
According to Eleesa Dadiani who is the founder of the company, “One of our clients approached us and said they were interested in acquiring 25% of all bitcoin currently available. There are a number of entities who want to dominate the market”.
In 2017, Bitcoin was able to go as high as near $20K before it went had a correction. It lost more than 80% of its peak value during that time over the next 12 months. But now, it seems that Bitcoin is actually back. But of course, things are a bit different. In 2017, the movement was mainly due to ICOs. But with more regulators taking down ICOs, is it possible that we are going to see more institutional investors at play?
You also have the likes of JP Morgan and Facebook. Facebook has been looking to develop its own cryptocurrency that can be used within its platform. This is also true with JP Morgan. JP Morgan has been looking for ways on how to use the technology to their advantage. They were reported to be having a JP Morgan Coin. In contrast to former statements by JP Morgan, it seems that they now believe in blockchain.