Jeez… Bitcoin Hasn’t Stopped Yet
Call us a broken record, but wow, Bitcoin (BTC) has been on an absolute tear. As of the time of writing this, the asset has just tapped $7,100 for the first time in approximately eight months. Wait no, it just hit $7,250. Let’s take a look at what analysts are thinking right now.
Trader Mr. Anderson believes that Bitcoin has undoubtedly entered a parabolic trading pattern. From here, he expects for the asset to set up a base, or short-term trading range”, likely in the high $6,000s or low-$7,000s. Then after this base is established, BTC could begin yet another rapid rally, potentially moving above $8,000.
He isn’t the only one who expects for Bitcoin to move higher from here. In a recent tweet, Alex Kruger, a popular researcher, suggested that the cryptocurrency market is in a fully-fledged bull market. While he did make it clear that a short-term pullback is likely, as “intraday blow-off top(s)” often result in retracements, he notes that Bitcoin is finally entering key zones for bulls after 2018’s 80% drawdown. Even more importantly, the hourly volume seen on BitMEX earlier today was the “second largest ever after September 5th, 2018,” according to Krüger — a sign that speculative interest is returning en-masse and is likely to cause further volatility.
Aside from technicals and market trends, everyone still seems to be fundamentally enamored with the cryptocurrency market. In a recent speech in New York, Mike Novogratz, the chief executive of Galaxy Digital, recently took to the stage of Ethereal Summit, an Ethereum-themed conference, to talk all things crypto.
According to Decrypt Media, Novo sported some “gaudy” pink chinos (yikes). During his talk, the former institutional investor claimed that Bitcoin is well on its way to becoming a store of value, purportedly the “first major use” for this newfangled technology. The former Goldman Sachs partner adds:
Bitcoin is kind of finished. You don’t need to do a lot more to it to fulfill its use case; it’s not the technology. We could take the bitcoin code and reconstruct it tonight, we call it Novocoin and it’ll be worth bupkis.”
This fact alone should drive the cryptocurrency higher with time. As Morgan Creek’s Mark Yusko postulated in a recent interview, he expects for BTC to breach $400,000 with time, as it will (or is likely to) absorb the market capitalization of gold, which currently sits at around $7.5 trillion. He believes this because Bitcoin’s underlying characteristics make it better than the precious metal. Unlike gold, Bitcoin is actually capped (supply), censorship-resistant, digital, decentralized, and not controlled by a single or few large entities.
Title Image Courtesy of Brad Knight Via Unsplash