Bitcoin has been able to recover in the past month. And now, it seems that it’s a common opinion among crypto experts that we are now headed towards a bull market. In 2017, Bitcoin was able to get to near $20K level.
But is this really the case for the recent price movement? It seems that Bitcoin has lost a bit of steam lately and is still stuck around $8K. But considering that there were Bitcoin whales involved, it is important to ask the question of what is next for the cryptocurrency?
In CNBC’s Fast Money, the interviewer asked Brian Kelly what he thinks is going to happen next to Bitcoin. He mentioned that “The big picture here is that we are starting to enter a cycle where you get a supply cut. Every four years the supply of Bitcoin gets cut in half and you generally have a rally the year into it and the year out of it”.
Given the current demand and the impending cut in supply, could it mean that we are going to see Bitcoin’s price go higher soon?
From $4K to Around $8K?
In early April this year, Bitcoin was just floating around $4,000. It grew momentum and was able to go as high as $8,250 not just once but twice. Josh Rager, who is a famous crypto trader and analyst thinks that there is a chance for a bullish scenario.
Is the crypto winter over? But if you are going to ask former economist for the World Bank Leah Wald, she believes that there is still a chance that Bitcoin could be seeing a new low. Wald together with Tyler Jenks believed that Bitcoin will hit around $1,500 before it even goes to $6,500. But now that Bitcoin is all the way to around $8K, does it mean that Bitcoin is already in a safe territory?
For Financial Survivalism, another cryptoanalyst, it was noted that there is a chance that Bitcoin is going to “mirror the price action from September 20th to November 25th of last year”. It was also postulated that the worst case is Bitcoin hitting $800.
Institutional Investor Interest?
There are a number of institutional investors that are now interested in cryptocurrencies. There are now regulatory changes happening in the niche that may have an influence in getting the price of cryptocurrencies up.
In fact, JP Morgan wasn’t much a fan of Bitcoin. Jamie Morgan, who worked as its CEO even called Bitcoin “was not a real thing” in 2017.
But surprisingly, Nasdaq even tested a Bitcoin-enabled investment product. Also, the New York Stock Exchange is also looking to have a Bitcoin ETF. Recently, JPMorgan strategists mentioned that they believe that Bitcoin has an intrinsic value. However, Bitcoin, for them, is an overvalued asset especially if it is compared to the likes of gold.
For Anthony Pompliano, who is the co-founder of Morgan Creek Capital, he mentioned that “Never listen to what a bank says”. He added that “Watch what they do”.
What’s next for Bitcoin? Are we going to see more of a rally in the coming days? Or is it already done? Is Bitcoin already struggling to surpass $8K level at this point?