- Bitcoin recently hit a 19-month high over $43,000, with Bloomberg analysts forecasting it could reach between $50,000 and $500,000. Key drivers include macroeconomic factors and potential ETF approval.
- The rally is considered more substantial than in 2021, with a BTC spot ETF potentially attracting significant investments.
- Caution is advised as a drop below $31,000 could lead to a significant correction, potentially reducing BTC’s value to around $29,000.
The Start of the Next Crypto Supercycle?
Bullish Bitcoin investors and crypto traders received a sweet Christmas present this week, as BTC recently broke above $43k, setting a new 19-month high. As per data from TradingView, the asset has recorded over 17% in gains in the past seven days.
Bitcoin’s recent growth has led Bloomberg analysts to share their price predictions for the largest crypto asset in the market. As per the report, many believe it could reach between $50,000 and $500,000.
Matt Maley, Chief Market Strategist at Miller Tabak & Co, acknowledges the surge in optimistic speculations, describing it as “getting crazy again” and highlighting the rapid sentiment shifts in the market.
I would argue that one of the most important reasons Bitcoin rallied so strongly in 2020 and 2021 was because of the massive influx of liquidity into the system due to the pandemic. Without another huge liquidity program, some of those predictions are a pipe dream.” Maley stated.
While not the first, this prediction by Bloomberg is considerably higher than what most analysts and financial institutions have concluded recently. As reported, conservative traders aim for $50k or $100 by 2024, but others are convinced it could go north of $1M post-ETF approval.
BTC Traders on the Edge
Many analysts echo that this is just the beginning, with consolidation expected around the $41-43K range.
The BTC rally is viewed as “earned” growth compared to 2021. Coinbase even said a BTC spot ETF could attract billions of dollars into the market.
That said, several factors are driving BTC’s rally: macroeconomic factors, the FED’s stance against inflation in the US, and the potential approval of a BTC spot ETF from investment giants like BlackRock.
While it looks like Bitcoin is recovering from a long winter and exceeded bullish expectations, some analysts believe it’s best to exercise caution. As CryptoPotato reported, Bitfinex analysts suggest that if BTC falls below $31k, it could trigger a significant correction, leading to investor capitulation and a potential drop to around $29,000.
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