The price of bitcoin has fallen in recent days from an all-time high of over $69,000 to around $61,000 (4:30 p.m. Tuesday). Many analysts are of the opinion that bitcoin has thus “withdrawn to its pre-determined positions” and that the oldest cryptocurrency in the world will return to gains.
According to an analyst active on Twitter with the nickname GalaxyBTC, the latest price drop is a retest of the resistance that was previously broken, which has turned into support. After its completion, another rally in growth to $75,000 is possible. “A drop to $59-61k followed by some consolidation is the best way to continue the boom. Such a deep pullback would be extremely healthy,” GalaxyBTC added in another tweet.
According to a report published a few days ago by the Glassnode platform, Bitcoin users are likely hoping for a continuation of the uptrend. It turns out that the number of “coins” stored on exchanges does not change. This could mean that many market participants are reluctant to dump cryptocurrency at current price levels.
Investors usually transfer virtual currencies to exchanges when they intend to sell them. People who, despite market turmoil, stick to a certain asset and do not want to make a profit quickly are the so-called “diamond hands”. Glassnode experts believe that hovering bitcoin’s price near an all-time high while keeping resources in “diamond hands” could indicate the market is in a “calm phase of accumulation.” Many investors are still reiterating their predictions that bitcoin will soon break above the $100,000 mark.
Well-known American investor and founder and managing partner of New York-based hedge fund SkyBridge Capital, Anthony Scaramucci, believes bitcoin will easily hit $500,000. He predicts this could happen in late 2024. He calls on investors to buy bitcoin now. According to him, the market is still at a very early stage of development.
Scaramucci says bitcoin will be an increasingly scarce commodity. He points out that the total supply is too small to suffice for one “coin” for every millionaire in the world. It’s based on JP Morgan estimates, which show there are now 49 million people worldwide with assets exceeding $1 million.
Ethereum, the second largest cryptocurrency in the world, has been behaving similarly to bitcoin in recent days. After setting an all-time high of around $4,850, the price plunged to $4,300 (4:30 p.m. Tuesday).
A big proponent of “Ether” is Raoul Pal, a former Goldman Sachs board member and founder of Real Vision. He recently revealed that 55% of his cryptocurrency portfolio is Ethereum. Another 25% is made up of bitcoins and the rest is made up of other altcoins.
Raoul Pal predicts that the two major cryptocurrencies will multiply in value and this will happen in the short term – by March 2022. In his opinion, individual investors will report a strong demand for digital currencies. – I think bitcoin will reach $200,000 and ethereum will be close to $15,000. The whole cycle should end around $400,000 for bitcoin and near the $40,000 barrier for ethereum, Pal said.
Miami residents will experience a very tangible benefit from cryptocurrencies. The city promised to refund the Bitcoin profit to them. The money will come from a successful cryptocurrency investment by local authorities, which has earned $21 million in bitcoin over the past three months.
The city will want to introduce digital wallets to distribute profits to residents. You will also need a registration and verification system to ensure that only people living within the city limits benefit from the program.
Simon Peters, cryptocurrency analyst at eToro, points out that Miami has grown in popularity during the pandemic as an alternative financial center to New York. The two cities compete strongly to attract talent and businesses.
Cryptocurrencies can also be used daily by moviegoers. Cinema chain AMC has started allowing customers to purchase tickets using digital currencies. However, it is not possible to pay with “coins” for popcorn and other snacks. The company accepts bitcoin, ethereum, litecoin, and bitcoin cash for online purchases. Dogecoin is to be added to this list in the near future. The CEO of AMC revealed that cryptocurrency operations already account for 14%. all online transactions.