Bloomberg Expects Bitcoin Price To Surpass $500,000 In Upcoming Crypto Super Cycle
05 December 2023 - 12:00PM
NEWSBTC
In a recent Bloomberg report, it has been suggested that the rise
of Bitcoin price to over $42,000 is just the beginning of a new
crypto super cycle that will push the world’s largest
cryptocurrency to over $500,000. According to Bloomberg, proponents
of this theory argue that Bitcoin represents a new monetary order
that is captivating Wall Street and fueling a “palpable sense of
euphoria” within the digital asset community. Bitcoin Price
Potential Soars The remarkable performance of the Bitcoin price in
recent months took many by surprise, as the cryptocurrency posted
three consecutive monthly increases, including another 11 percent
in December alone. The enthusiasm surrounding Bitcoin’s price
rally has led to optimistic predictions of further gains, often
based on intuition or technical analysis. The cryptocurrency has
experienced a significant price revival in 2023, with its value
surging over 150% thus far. Market observers attribute this surge
to growing anticipation of a potential approval of a Bitcoin
exchange-traded fund (ETF) for trading in the United States.
Related Reading: Crypto Analyst Says It’s “Not Too Late” To Buy
Ethereum, Here’s Why Per the report, the prospect of an ETF has led
to jubilation within the industry. Coinbase CEO Brian Armstrong
suggests that “Bitcoin may be the key to extending Western
civilization.” Forecasts regarding the future price of Bitcoin have
ranged from $50,000 in the immediate term to above $530,000. Matt
Maley, chief market strategist at Miller Tabak & Co., cautions
about the rapidly changing sentiment in the asset class,
highlighting the importance of the liquidity influx caused by the
pandemic in driving Bitcoin’s strong rally in 2020 and 2021.
Maley suggests that without a similar liquidity injection, some of
the optimistic predictions surrounding Bitcoin’s future value may
be unrealistic. The long-awaited launch of a Bitcoin-based ETF in
the United States aims to facilitate easier access to the
cryptocurrency for money managers, potentially attracting billions
of dollars in new investments to the space. BTC ETF
Speculation Sparks Optimism Researchers at Kaiko note a
noticeable shift in the market sentiment since mid-October, driven
by increasing institutional interest in the potential approval of a
spot BTC ETF and a more favorable macroeconomic environment.
The researchers also highlight recent inflows into crypto
investment products and a seven-month high in daily spot-trading
volumes in November. Nevertheless, while excitement about a broader
crypto rally often spreads across social media platforms like X
(formerly known as Twitter), it is important to acknowledge
Bitcoin’s historical volatility. Related Reading: Shiba Inu
Open Interest Falls Behind General Crypto Market, What This Means
For Price According to Bloomberg, the cryptocurrency has
experienced multiple hype cycles in recent years, with celebrated
gains followed by significant downturns. Despite Bitcoin’s
recent gains and departure from a prolonged consolidation phase,
Bloomberg suggests that a significant correction may still be on
the horizon. At present, Bitcoin is trading at $41,800, displaying
sustained bullish momentum as it strives to reclaim the $42,000
level. The outcome remains uncertain whether the
cryptocurrency will successfully consolidate above this critical
level, positioning it favorably for continued upward movement
throughout the month. Alternatively, the current yearly high
level could act as a formidable resistance barrier for the Bitcoin
price, further supporting Bloomberg’s thesis of a potential
correction. Featured image from Shutterstock, chart from
TradingView.com
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