By the end of the year, Bitcoin will be worth more than $100,000, and the crypto winter will finally come to an end. Economists from Standard Chartered Bank have come to this conclusion. In a published report, it is stated that the world’s first cryptocurrency could reach the $100,000 level by the end of this year, driven by a number of factors, including the recent crisis in the U.S. banking sector, which has helped restore the use of Bitcoin as a decentralized deficit digital asset.
The company’s analytical note states that Bitcoin has benefited from its status as a safe-haven asset, a status it was endowed with even before the start of the coronavirus pandemic crisis. Since the beginning of the year, Bitcoin has already added 65%, updating its mid-April level to $31,000 for the first time in almost a year. Immediately after that, profit-taking occurred, and Bitcoin dropped to $27,200, but this does not pose any danger to the bull market.
The report also notes that one of the factors driving the price growth to $100,000 is a broader macroeconomic backdrop for risky assets, gradually improving as the Federal Reserve approaches the end of its monetary policy tightening cycle. The correlation with Nasdaq suggests that Bitcoin will continue to grow if demand for risky assets in general improves.
Standard Chartered expects Bitcoin’s share of the entire cryptocurrency market capitalization to grow again to 50%–60%. According to the latest data, Bitcoin’s dominance level is currently around 47%. During the Silicon Valley Bank crash in mid-March this year, it was only about 40%.
The upcoming reduction in Bitcoin mining rewards, which occurs every four years, can also be a positive factor for price growth. “As we approach the next reduction, we expect cyclical factors to benefit, and the price will continue to rise,” the note states.
As for today’s technical picture of Bitcoin, talk of continued growth can only occur after maintaining control over the $29,200 level, which is likely to be tested soon. This will give a chance to build a bull market with the prospect of updating $31,000. The ultimate target will be the $32,300 area, where a fairly large profit-taking and Bitcoin downward pullback may occur. In case of a return of pressure on the trading instrument, the focus will be on protecting $27,200. Its breakdown will be a blow to the asset, opening a direct path to $25,500. Breaking through this level will “drop” the world’s first cryptocurrency to around $23,900.
Ethereum buyers’ focus is now on maintaining control over the nearest support of $1,800 and breaking through the nearest resistance of $1,925 with the prospect of reaching $2,028. Only this will allow the continuation of the bullish trend, leading to a new Ethereum surge to around $2,127. Exiting the range will allow reaching $2,250. If pressure returns to ETH, the $1,803 level will come into play. Below, the $1,697 area is visible. Its breakdown will push the trading instrument to a low of $1,640.
The material has been provided by InstaForex Company – www.instaforex.com
By the end of the year, Bitcoin will be worth more than $100,000, and the crypto winter will finally come to an end. Economists from Standard Chartered Bank have come to this conclusion. In a published report, it is stated that the world’s first cryptocurrency could reach the $100,000 level by the end of this year, driven by a number of factors, including the recent crisis in the U.S. banking sector, which has helped restore the use of Bitcoin as a decentralized deficit digital asset.
The company’s analytical note states that Bitcoin has benefited from its status as a safe-haven asset, a status it was endowed with even before the start of the coronavirus pandemic crisis. Since the beginning of the year, Bitcoin has already added 65%, updating its mid-April level to $31,000 for the first time in almost a year. Immediately after that, profit-taking occurred, and Bitcoin dropped to $27,200, but this does not pose any danger to the bull market.
The report also notes that one of the factors driving the price growth to $100,000 is a broader macroeconomic backdrop for risky assets, gradually improving as the Federal Reserve approaches the end of its monetary policy tightening cycle. The correlation with Nasdaq suggests that Bitcoin will continue to grow if demand for risky assets in general improves.
Standard Chartered expects Bitcoin’s share of the entire cryptocurrency market capitalization to grow again to 50%–60%. According to the latest data, Bitcoin’s dominance level is currently around 47%. During the Silicon Valley Bank crash in mid-March this year, it was only about 40%.
The upcoming reduction in Bitcoin mining rewards, which occurs every four years, can also be a positive factor for price growth. “As we approach the next reduction, we expect cyclical factors to benefit, and the price will continue to rise,” the note states.
As for today’s technical picture of Bitcoin, talk of continued growth can only occur after maintaining control over the $29,200 level, which is likely to be tested soon. This will give a chance to build a bull market with the prospect of updating $31,000. The ultimate target will be the $32,300 area, where a fairly large profit-taking and Bitcoin downward pullback may occur. In case of a return of pressure on the trading instrument, the focus will be on protecting $27,200. Its breakdown will be a blow to the asset, opening a direct path to $25,500. Breaking through this level will “drop” the world’s first cryptocurrency to around $23,900.
Ethereum buyers’ focus is now on maintaining control over the nearest support of $1,800 and breaking through the nearest resistance of $1,925 with the prospect of reaching $2,028. Only this will allow the continuation of the bullish trend, leading to a new Ethereum surge to around $2,127. Exiting the range will allow reaching $2,250. If pressure returns to ETH, the $1,803 level will come into play. Below, the $1,697 area is visible. Its breakdown will push the trading instrument to a low of $1,640.
The material has been provided by InstaForex Company – www.instaforex.com
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