Bitcoin has risen in price, but does not inspire confidence

Bitcoin began to decline dramatically in early April. The most critical was on May 12, when news of the collapse of two other cryptocurrencies (terry and luna) dropped to the $26,000 level. However, for several dozen hours, the price of bitcoin remained near three-week highs.

Juan Pellicer, an analyst at Into The Block, believes that the rise in the “coin” is due to last week’s very serious upward movement on Wall Street indices. – Bitcoin has been correlated with big tech stocks for some time. I’m confident that at least some companies in this industry are poised for a V-shaped bounce. Considering bitcoin is down more than 50% from last year’s high and many altcoins over 70% cryptocurrency bull offensive is likely predicted Juan Pellicer.

Many analysts simultaneously present good and bad forecasts for the first cryptocurrency in the world. – If bitcoin definitely breaks the resistance at $31,500, it could go up to $36,000. However, if it breaks below the support around 28,500, the price could drop to $20,000 – predicts MadsEberhardt, cryptocurrency market analyst at Saxo Bank.

Moreover, Sebastian Seliga, analyst at the Zonda exchange, is not sure what will happen in the market. – Bitcoin is no longer so sensitive to pressure from bears and is more and more resistant to their attacks. It is true that there is still room for another bearish candle on the chart, but supply is not as involved in provoking new lower lows as it was until recently. – comments Sebastian Seliga.

Recall, however, that in mid-May a very pessimistic short-term forecast for bitcoin was presented by Scott Minerd, chief investment officer of global giant Guggenheim Partners. When Bitcoin drops below $30,000, the net profit is $8,000. There is plenty of room for further market declines, especially as the US central bank continues to tighten monetary policy, he said.

BUSINESS INTERIA on Facebook and you are up to date with the latest events

The popular cryptocurrency analyst and creator of the stock-to-flow (S2F) model known as PlanB is an inconsistent optimist. Certainly, he notes that if bitcoin remains stuck around $30,000 and moves in a horizontal trend, there is further downside potential. In the long term, however, he predicts a huge upside move.

PlanB recalls that with the help of the S2F model created in March 2019, it predicted a 14-fold increase in the price of bitcoin. He thinks the current cryptocurrency selloff appears to be similar to the declines of 2015 and 2018-19, which could herald a strong uptrend in the near future. PlanB speculates that after halving in 2024, bitcoin could rise to as high as $500,000.

In turn, the CEO of mining company Argo, Peter Wall, believes that focusing on the long-term growth of the cryptocurrency market will help its participants overcome the bearish sentiment and declines seen in recent months. According to him, bitcoin is “gold 2.0” and will become a bulwark against inflation, even if it does not look like it at the moment.

– The advantage of the oldest cryptocurrency in the world is the limited supply of 21 million “coins”, as well as its decentralized and unauthorized nature. On the other hand, bitcoin is a teenager becoming a young adult. Until fully mature, the market will continue to experience wild price swings, concludes Peter Wall.

MicroStrategy co-founder and CEO Michael Saylor, who thinks bitcoin is the “safest thing” in the world, agrees. “In a market full of chaos, hype, and rage, people need a safe place to hang out outside of government intervention. agency or company. Bitcoin represents a fair, open and equitable network with a very simple promise to everyone. And that is: what you have is yours and no one will take it from you – comments Michael Saylor.

He also adds that if we take into account the situation before the pandemic, in the last two years, the money supply in the United States has increased by 36%, gold has increased by 7%, the S&P index 500 has improved by 29%, and the Nasdaq only by 19%. Meanwhile, bitcoin has risen by 229%.

It should be remembered, however, that Michael Saylor has very specific reasons for touting cryptocurrency. His MicroStrategy has the largest bitcoin net worth of any publicly traded company. The company has purchased over 129,000 “coins” to date, and their value is currently $4 billion. Tesla comes in second with $1.3 billion worth of bitcoins.

Yanis Varoufakis, former finance minister of Greece, disagrees with the view that cryptocurrencies are a panacea for the problems of the modern financial system. According to him, bitcoin and gold will not replace traditional currencies such as the euro or the dollar and will not protect citizens from geopolitical crises. Imposing such a role on virtual currencies would be – according to him – a nightmare.

– The money supply must be controlled, and seeking freedom in this area outside of government is a dangerous fantasy. The idea that the money supply should be independent of politics is very dangerous. Central banks were created to increase the mass of money during a crisis and to prevent the depression of the economy – explains Varoufakis. He adds that the high inflation currently seen around the world is not the result of loose monetary policy, but is due to the disruption of supply chains and an increase in demand for goods.

Jacek Brzeski

Also check:

Leave a Comment