Grayscale Investments has announced that the price of bitcoin could explode in the next coming months given how much btc is imitating its 2016 behavior.
In a recent report, the institutional crypto trading platform writes:
The current bitcoin market structure parallels that of early 2016 before [bitcoin] began its historic bull run. Amidst unprecedented monetary and fiscal stimulus, investors are searching for ways to protect against an ever-expanding monetary supply. Because of bitcoin’s unique qualities – such as its verifiable scarcity and a supply that can’t be controlled by a central authority – we believe it can be leveraged as a store of value and as a way to escape this great monetary inflation.
In looking at Grayscale’s words, it’s easy to assume that the company – like many analysts and traders nowadays – sees bitcoin as a potential “safe haven,” or something that can hedge one’s wealth against harsh economic circumstances. The economy of the United States, for example, has been hit hard over the past several months given the coronavirus pandemic. The U.S. dollar has also been weakened.
Thus, BTC can probably give people access to financial stability that traditional fiat no longer can, and Grayscale is pointing out alot factors in bitcoin that could cause the price to surge even more further.
But if that’s true, then why is bitcoin falling as of late? The currency has experienced something of a snag in its recent wave of good luck. The asset quickly hit the $12,400 mark earlier in the week, but this didn’t seem to last long. The currency then fell as low as $11,500, meaning nearly $1,000 in its price was lost. At the time of writing, the currency has settled into the $11,600 range.
On top of that, bitcoin’s bearish behavior seems to be rubbing off on other top coins. Recently, Chainlink (LINK) was proving itself as one of the top altcoin after having moved into the top five and accumulating a market cap of roughly $20 million. A unit of LINK was trading for over $20, though at the time of writing this post, the asset’s price has fallen by as much as 25 percent, meaning it is suffering more than BTC.
Why all the sudden changes? Were the spikes just too much too quick? Did all these altcoins need more time to prepare, and could we probably see more dips before Grayscale’s predictions come true?
Suggesting that this may all be temporary, and that bitcoin is about to become more bullish than anybody anticipated. Said The chief executive of crypto hedge fund Bit Bull Capital – Joe DiPasquale
Bitcoin’s recent price action really took off from the $10,000 level, indicating market confidence in the big move at the end of July. Moving forward, we can expect the market to lean on the support zone between $11,000 and $11,500 to consolidate and try another push above $12,000.
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