Reportedly, analysts opine whileBitcoin is currently in a bull market it can go up to as high as $300,000 based on the historical patterns; however, they also state that a drastic decline is unavoidable. BTC had broken multiple record levels this year, but it is anticipated that a “Bitcoin Winter” that is too long might be on the cards.
The bull cycle this time seems to be a big one. For clarity, “Bitcoin Winter” refers to a price situation where the price can go way down and this is also known as the time when the “bubble will burst.” Reportedly, experts state that this might last for 2 to 3 years.
CNBC reports analyst Lee stating: “Bitcoin is very volatile, but the rewards are risk-adjusted.”
When discussing price appreciation, it is believed that bigger investments in to Bitcoin might be able to move the price to a great extent. This idea is brewing at a point in time when institutions and retail investors are pouring their money in BTC.
Important to recollect the investment from Tesla Inc; Microstrategy Inc; and JPMorgan Chase & Co. strategists. Institutional investments alone have led to the value of BTC increase by 20% in terms of dollars.
For clarity, per Wikipedia, institutional investor means, “An institutional investor is an entity which pools money to purchase securities, real property, and other investment assets or originate loans. Institutional investors include banks, credit unions, insurance companies, pension funds, hedge funds, REITs, investment advisors, endowments, and mutual funds.”
Thus, institutional investments running in to BTC means that the value will further flow in to all the products and securities that these companies might be interested to invest themselves means. And, for all practical reasons, it is very visible that the value will make it to everywhere there will be a need for value.
Cryptocurrencies are gaining credit as an asset class. Several robust products and derivative markets will soon develop and more of institutions coming in to the place will only lead to the price of BTC appreciating.
Some look at BTC as a potential refuge from inflation because of its scarcity, some are excited about the profits they can make due to the volatility, others are looking at it as an expensive and energy consuming payment mechanism.
No matter what it has been seen since the pandemic that some of the largest addresses that hold BTC have not sold since the pandemic. This just means that they are holding to it because it has more value than the rest perceive.
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