The price of Bitcoin passed $11,000 on Monday, the highest it has reached in almost a year, and according to experts, there are more gains to come.
Reaching $1,268.19, a one-day rise of 12.73%, the Bitcoin price has now dropped slightly to $11,041.50 at the time of writing.
It follows the much anticipated Bitcoin halving event it May, where the amount generated from mining work was cut by half. However, the halving is unlikely to be the sole cause.
Bitcoin has followed a similar cycle for many years, [and] many believe this is the start of the next multi-year bull market, says Richard Simpson, chief business development officer at tap Global.
The halving event in May reduced the daily new supply by half. A more short-term general rotation away from Alt coins and into BTC provided the fuel for the short-term spike.
For many experts, this surge has been long expected.
The break-out has been long coming, after months of bumbling along in mid $9,000s, for Bitcoin investors, has been akin to watching paint dry, explains Katharine Wooller, managing director, Dacxi, UK and Eire.
In particular, cryptocurrency has seen greater institutional support than ever before, which has undoubtedly helped the rising price.
It has been a phenomenal year so far for crypto, building upwards pressure from unrelentingly good news; for example; Paypals announcement they will provide crypto services to their 325 million users, solid progress on Eth 2.0, and in the US the Office of the Comptroller of the Currency softening their position on crypto, says Wooller.
However, despite the surging Bitcoin price, there is reason for caution.
Bitcoinhas been a beneficiary of increased adoption and more acceptance on the regulatory side, particularly out of the US. At the same time, while recent gains have been impressive, withBitcoinpushing back above $10k, its important to recognise where were at technically and fundamentally, says Joel Kruger, currency strategist at LMAX Group.
Bitcoinis now overextended against the US Dollar, into a critical resistance zone ahead of its 2019 high. This comes at a time when the global outlook is increasingly uncertain and the prospect for another big downturn in stocks, much like was seen back in March, is very real.
Get the Verdict weekly email
For some, the economic uncertainty is set to spark further growth in Bitcoin, as investors increasingly look to the cryptoasset as a safe haven from more exposed investments.
Bitcoin is currently realising its reputation as a form of digital gold. Up to now, gold has been known as the ultimate safe-haven asset, but Bitcoin which shares its key characteristics of being a store of value and scarcity could potentially knock gold from its long-held position in the future as the world becomes ever-more tech-driven, says Nigel Green, CEO of deVere Group.
Geopolitical issues, such as the US-China spat, will prompt many savvy investors to increase exposure to decentralised, non-sovereign, secure digital currencies, including Bitcoin, to shield them from the turbulence taking place in traditional markets.
This is a view echoed by Dacxis Wooller, who also sees comparisons to the 2017 Bitcoin market, shortly before its all-time-high surge.
As we get a real sense of just how bad the post-coronavirus economic reality looks, I expect to see retail and institutional investor alike jumping ship from traditional assets to reputable crypto, she says.
Certainly, recent announcements from the likes of JPMorgan and Standard Chartered suggest institutional interest in crypto is no passing fad.
But while many see the economic situation potentially buoying Bitcoin, others believe it could pose a risk to the cryptocurrencys price.
Our view is that we still believe the markets are pulled on the one hand by the inflation hedge story driving Bitcoin higher while at the same time the global economy is suffering a massive demand shock with the potential to drive Bitcoin lower, says Gavin Smith, CEO of Panxora.
However, the general sense is that there is a change in the wind, with a bull market rising to dominate over the coming months and potentially years.
Short term, we could continue pushing higher quickly, or just as easily pull back to recent support, either scenario can be bullish. But really its anyones guess, says tap Globals Simpson.
Medium term, many well-regarded models point to this being the start of a multi-year bull run, possibly concluding in around 18 months. Long term Bitcoin has and probably will continue to outperform every other asset class.
The surge has now led some to predict Bitcoin could climb as high at $20,000 by the end of the year, although not all agree with this sentiment.
Simpson, for example believes that while we certainly could see it hitting these giddy heights in 2020, we could easily not.
I would probably guess at highs this year below $20k, but with something much higher at some point next year, he says.
This perception is echoed by Panxoras Smith, who sees 2020 has still having high volatility with a year-end of around $7,000, with a drive higher to new highs in 2021.
We also believe that the inflation story will drive the longer-term dynamic for Bitcoin, so wouldnt short this market, even while we believe there will be a short-term washout this year before the true rally takes hold, he adds.
However, while LMAX Groups Kruger also sees volatility being present, he sees a higher 2020 peak than Smith.
We dont believe Bitcoin is ready just yet to be fully appreciated as a store of value asset, which means that in the short term, Bitcoin will still be exposed to periods of risk off in traditional markets, he says.
At the same time, we believe any setbacks will continue to be very well supported on dips, with medium and longer-term players happy to step in and build exposure in anticipation of Bitcoin realising its potential as a store of value asset.
This could set the stage for another healthy pullback over the coming months, before Bitcoin is bid back up and looks to close out the year on a strong note with a push towards $20k.
For Wooller and many others meanwhile, all metaphorical bets are off.
Personally, I am cautiously optimistic. 2020 has been a wrecking ball to economic theory we have no precedent for a global pandemic in modern times and are thus are in unchartered territory, says Wooller.
At a very basic level, Bitcoin has never been harder to extract, and the total addressable market is ever growing. Nothing is impossible in crypto it adapts and advances at breakneck speed the industry sometimes feels like has its own time zone; and a bit like converting dog years, that a month in crypto is a like a year in any other.
I have a sneaking suspicion that 2020 will be year that Bitcoin, as a concept, is validated.
Read more: Bitcoin can protect investors against inflation
Read more from the original source:
Bitcoin price hits $11000, raising possibility of multi-year bull run - Verdict
- Google removes malware Android apps used to secretly mine bitcoin [Last Updated On: April 26th, 2014] [Originally Added On: April 26th, 2014]
- Bitcoin exchange MtGox liquidated [Last Updated On: April 26th, 2014] [Originally Added On: April 26th, 2014]
- Bitcoin Wannabe Litecoin Emerges as Low-Price Challenger [Last Updated On: April 26th, 2014] [Originally Added On: April 26th, 2014]
- The Worlds First Bitcoin Debit Card Is Almost Here [Last Updated On: April 26th, 2014] [Originally Added On: April 26th, 2014]
- How does Bitcoin work? - Bitcoin - Open source P2P money [Last Updated On: April 26th, 2014] [Originally Added On: April 26th, 2014]
- Bitcoin - Wikipedia, the free encyclopedia [Last Updated On: April 26th, 2014] [Originally Added On: April 26th, 2014]
- The Bitcoin Group #27 - China Bans Bitcoin Again - Politics - Dark Market - Bitcoin VC - Video [Last Updated On: April 26th, 2014] [Originally Added On: April 26th, 2014]
- Edan Yago - Free Market Bitcoin regulation and Honduras free trade zones.mp4 - Video [Last Updated On: April 26th, 2014] [Originally Added On: April 26th, 2014]
- Bitcoin vs. Political Power: The Cryptocurrency Revolution - Stefan Molyneux at TNW Conference - Video [Last Updated On: April 26th, 2014] [Originally Added On: April 26th, 2014]
- Video: Roundup of This Week's Bitcoin News 25th April 2014 - Video [Last Updated On: April 26th, 2014] [Originally Added On: April 26th, 2014]
- Bitcoin Fredagsbar med Torben Mark Pedersen - Video [Last Updated On: April 26th, 2014] [Originally Added On: April 26th, 2014]
- Bitcoin and the Internet of Money - Video [Last Updated On: April 26th, 2014] [Originally Added On: April 26th, 2014]
- Bitcoin for Dummies - Video [Last Updated On: April 26th, 2014] [Originally Added On: April 26th, 2014]
- Bitcoin runner-up Litecoin emerges as low-price challenger [Last Updated On: April 27th, 2014] [Originally Added On: April 27th, 2014]
- Bitcoin or Gold? Squawk Walk Taipei- Squawkonomics - Video [Last Updated On: April 27th, 2014] [Originally Added On: April 27th, 2014]
- Bitcoin Miner AntMiner S1 180 - 200 GH/s Nu in de Aanbieding! - Video [Last Updated On: April 27th, 2014] [Originally Added On: April 27th, 2014]
- New Bitcoin Documentary: Boom or Bust - Video [Last Updated On: April 27th, 2014] [Originally Added On: April 27th, 2014]
- Bitcoin May v0.9.1 GitHub Source Code Development Visualization - Video [Last Updated On: April 27th, 2014] [Originally Added On: April 27th, 2014]
- Atomic-Trade Bitcoin Exchange. AML, BSA, FinCEN compliant - Video [Last Updated On: April 27th, 2014] [Originally Added On: April 27th, 2014]
- China Bans Bitcoin Again -- Bitcoin the Movie -- Startup for Startups Raises 2,000 BTC - Video [Last Updated On: April 27th, 2014] [Originally Added On: April 27th, 2014]
- 4/24/14 - Xapo Debit Card, Russia's 1st Bitcoin Conference, Silk Road 2.0 - Video [Last Updated On: April 27th, 2014] [Originally Added On: April 27th, 2014]
- What is Bitcoin? - Video [Last Updated On: April 27th, 2014] [Originally Added On: April 27th, 2014]
- David Andolfatto, How Does Bitcoin Work? - Video [Last Updated On: April 27th, 2014] [Originally Added On: April 27th, 2014]
- Australian Bitcoin traders hit by crash [Last Updated On: April 28th, 2014] [Originally Added On: April 28th, 2014]
- Bitcoin traders hit by Mt.Gox crash [Last Updated On: April 28th, 2014] [Originally Added On: April 28th, 2014]
- Market Extra: Bitcoin venture capital money hasnt kept up with buzz [Last Updated On: April 28th, 2014] [Originally Added On: April 28th, 2014]
- Bitcoin price slips as China steps up regulation [Last Updated On: April 28th, 2014] [Originally Added On: April 28th, 2014]
- Bitcoin price slips on China regulation [Last Updated On: April 28th, 2014] [Originally Added On: April 28th, 2014]
- Win .33 Bitcoin ($150 or so, Depending on BTC value) - Meme game for May 1st - Take My Bitcoins - Video [Last Updated On: April 28th, 2014] [Originally Added On: April 28th, 2014]
- Ron Paul on Bitcoin - Video [Last Updated On: April 28th, 2014] [Originally Added On: April 28th, 2014]
- btc.sx Bitcoin derivatives platform George Samman clip - Video [Last Updated On: April 28th, 2014] [Originally Added On: April 28th, 2014]
- 'The Rise And Rise Of Bitcoin' Filmmaker: 'There Is No Answer Yet' [Last Updated On: April 29th, 2014] [Originally Added On: April 29th, 2014]
- Bitcoin the movie: It just had to happen [Last Updated On: April 29th, 2014] [Originally Added On: April 29th, 2014]
- Bitcoin Vies with New Cryptocurrencies as Coin of the Cyber Realm [Last Updated On: April 29th, 2014] [Originally Added On: April 29th, 2014]
- The Bitcoin Meetup - BitcoinMKE Hosts Jeffrey Tucker - Video [Last Updated On: April 29th, 2014] [Originally Added On: April 29th, 2014]
- MIT Bitcoin Expo 2014 - Video [Last Updated On: April 29th, 2014] [Originally Added On: April 29th, 2014]
- Bitcoin Expo 2014: Fireside Chat with Dr Gavin Wood - Video [Last Updated On: April 29th, 2014] [Originally Added On: April 29th, 2014]
- Rise Bitcoin Singapore - Video [Last Updated On: April 29th, 2014] [Originally Added On: April 29th, 2014]
- Preview: Bitcoin Authenticator - 2FA for wallets - Video [Last Updated On: April 29th, 2014] [Originally Added On: April 29th, 2014]
- The Bitcoin Group #27 (Live) - China Bans Bitcoin Again - Politics - Dark Market - Bitcoin VC - Video [Last Updated On: April 29th, 2014] [Originally Added On: April 29th, 2014]
- 4/25/14 - More China uncertainty, Missourian bitcoin warning, BadLepricon malware - Video [Last Updated On: April 29th, 2014] [Originally Added On: April 29th, 2014]
- Money & Tech at The Rise And Rise Of Bitcoin Afterparty - Video [Last Updated On: April 29th, 2014] [Originally Added On: April 29th, 2014]
- New Bitcoin student club at MIT will promote the virtual currency [Last Updated On: April 30th, 2014] [Originally Added On: April 30th, 2014]
- 4/29/14 - MIT Bitcoin Project, Mt Gox revival plan, Mastercard lobbyists & Team Rubicon - Video [Last Updated On: April 30th, 2014] [Originally Added On: April 30th, 2014]
- BitCoin Dentist GoCoin Fox News Interview - Video [Last Updated On: April 30th, 2014] [Originally Added On: April 30th, 2014]
- Bitcoin Foundation Election Hiccups -- Pathetic Ohio Bans Bitcoins -- Dogecon SF 2014 - Video [Last Updated On: April 30th, 2014] [Originally Added On: April 30th, 2014]
- Bitcoin Slips to $420 as BTC China Halts Transactions - Video [Last Updated On: April 30th, 2014] [Originally Added On: April 30th, 2014]
- MultiSig Plus BitCoin Multi Coin Wallet looks like HUGE INVESTMENT potential! - Video [Last Updated On: April 30th, 2014] [Originally Added On: April 30th, 2014]
- Bitcoin: what happens when the miners pack up their gear? [Last Updated On: May 1st, 2014] [Originally Added On: May 1st, 2014]
- Dark Wallet Is About to Make Bitcoin Money Laundering Easier Than Ever [Last Updated On: May 1st, 2014] [Originally Added On: May 1st, 2014]
- Bitcoin Talk Show #7 -- Skype BitcoinTalkShow to Call in Live! 🙂 - Video [Last Updated On: May 1st, 2014] [Originally Added On: May 1st, 2014]
- Basic Bitcoin Bitches - Video [Last Updated On: May 1st, 2014] [Originally Added On: May 1st, 2014]
- Gold standard vs Fiat vs Bitcoin - Truthloader - Video [Last Updated On: May 1st, 2014] [Originally Added On: May 1st, 2014]
- How to Defund the System: Bitcoin vs. the Central Banksters - Video [Last Updated On: May 1st, 2014] [Originally Added On: May 1st, 2014]
- Bitcoin, Anarchy and Freedom with Roger Ver - Video [Last Updated On: May 1st, 2014] [Originally Added On: May 1st, 2014]
- MIT Goes Bitcoin-Wild [Last Updated On: May 1st, 2014] [Originally Added On: May 1st, 2014]
- Bitcoin Weekly 2014 April 30: Bloomberg adds Bitcoin to their market index, MIT to produce campus-wide bitcoin ... [Last Updated On: May 1st, 2014] [Originally Added On: May 1st, 2014]
- 'Dark Wallet' wants to make Bitcoin even harder to trace [Last Updated On: May 1st, 2014] [Originally Added On: May 1st, 2014]
- Bitcoin made simple (video animation) - Video [Last Updated On: May 1st, 2014] [Originally Added On: May 1st, 2014]
- Jon Matonis: Bitcoin - The future of commerce? - Video [Last Updated On: May 1st, 2014] [Originally Added On: May 1st, 2014]
- $100 in Bitcoin Going to Every MIT Undergrad - Video [Last Updated On: May 1st, 2014] [Originally Added On: May 1st, 2014]
- The Rise of Digital Currency - Video [Last Updated On: May 1st, 2014] [Originally Added On: May 1st, 2014]
- Money Goes Virtual: The Bitcoin Bourse - Video [Last Updated On: May 2nd, 2014] [Originally Added On: May 2nd, 2014]
- Bitcoin Lights with LIFX - Video [Last Updated On: May 2nd, 2014] [Originally Added On: May 2nd, 2014]
- Bitcoin: How We Got Here and Where We Are Going [Last Updated On: May 3rd, 2014] [Originally Added On: May 3rd, 2014]
- 5/1/14 - Larry Summers warns critics, Paym system & Bitcoin Center NYC roundtable - Video [Last Updated On: May 3rd, 2014] [Originally Added On: May 3rd, 2014]
- On est Connect S2 #07 1/2 : BitCoin et Musique sur Internet - Video [Last Updated On: May 3rd, 2014] [Originally Added On: May 3rd, 2014]
- MIT Undergrads To Receive $100 Worth Of Bitcoin This Fall - Video [Last Updated On: May 3rd, 2014] [Originally Added On: May 3rd, 2014]
- Why it only took ME less than 2 minutes to believe in Bitcoin - Video [Last Updated On: May 3rd, 2014] [Originally Added On: May 3rd, 2014]
- Bitcoin Basics and Regulation Thoughts from NH Liberty Forum - Bruce Fenton - Video [Last Updated On: May 3rd, 2014] [Originally Added On: May 3rd, 2014]
- PRIMER CAJERO DE BITCOIN EN BIT CENTER DE TIJUANA - Video [Last Updated On: May 3rd, 2014] [Originally Added On: May 3rd, 2014]
- Yelp adds Bitcoin acceptance to business listings - Video [Last Updated On: May 3rd, 2014] [Originally Added On: May 3rd, 2014]
- Bitcoin A Terrorist Threat? Counterterrorism Program Names Virtual Currencies As Area Of Interest [Last Updated On: May 4th, 2014] [Originally Added On: May 4th, 2014]
- How Does Bitcoin Works - Video [Last Updated On: May 4th, 2014] [Originally Added On: May 4th, 2014]
- 10 Things You Didn't Know About BitCoin - Video [Last Updated On: May 4th, 2014] [Originally Added On: May 4th, 2014]
- BITCOIN The Future of Money - Video [Last Updated On: May 4th, 2014] [Originally Added On: May 4th, 2014]
- Bitcoin Miner Review - Video [Last Updated On: May 4th, 2014] [Originally Added On: May 4th, 2014]
- The Bitcoin Group #28 (Live) - Yelp Lists Bitcoin - MIT Bitcoin $100 - Dark Wallet - Ohio Bans BTC - Video [Last Updated On: May 4th, 2014] [Originally Added On: May 4th, 2014]
- Bitcoin: Gary North is Mentally Deranged And Bitcoin Will Change Everything - Video [Last Updated On: May 4th, 2014] [Originally Added On: May 4th, 2014]
- Who is the Bitcoin Warlord? - Video [Last Updated On: May 4th, 2014] [Originally Added On: May 4th, 2014]