Advertisement
 
 
Roughly two months ago, bitcoin was trading below $4,000. A liquidation spiral, coupled with heightened fears of a potential global recession caused by the COVID-19 pandemic triggered a massive sell-off in the equities markets. The cryptocurrency market was not left unscathed.
But, eight weeks and a block subsidy halving later, bitcoin has recovered more than 100% from the mid-March agonizing lows. This impressive trend reversal has ignited optimism in the markets with analysts expecting further upside moves. Adamant Capital partner Tuur Demeester, for instance, believes bitcoin (BTC) is unlikely to slump below $6K in the near-term, and it could very well soar to $50K.
Bitcoin Rallying Past $50,000 Not Insane At All: Demeester
In a recent podcast interview with Messari’s Ryan Selkis, Demesteer noted that bitcoin bottomed out after the March lows, and a bull market is now back in play. He then touched on the possible impacts of the ongoing actions by the Federal Reserve on the bitcoin price.
Fed Chairman Jerome Powell recently asserted that the central bank has the “ability to create money digitally”. This unprecedented money printing is likely to weaken the purchasing power of the US dollar and it could upend the bitcoin price. However, Demeester still believes in BTC’s potential to reach the $50,000-$100,000 range in the future.
“I think a price target of like $50,000 is not insane at all. […] I would even say between $50,000-$100,000.”
As to what could spur the next major bullish cycle that will take BTC to a price point of at least $50,000, Demeester cites the growing institutional interest in the asset. In other words, family offices, billionaires, and hedge funds pouring money into bitcoin could swiftly push BTC past $50,000.
According to him, bitcoin is in a “land-grab phase” – a period whereby institutional investors are increasingly gravitating towards the crypto-asset.
He stated:
“Right now, its institutions that are interested. It’s kind of like a land-grab phase where you know [bitcoin] is going to get big and it’s not correlated with the traditional financial system that is in all kinds of trouble, and you know it’s very scarce, so, let’s just stake our claim and then see what’s going to be built on top of it, later.”
The assertion about institutional money flowing into BTC checks out, especially when considering data from platforms like the Chicago Mercantile Exchange (CME) that provide services to institutional investors.
Most experts in the industry deem the volumes on CME as a proxy for institutional involvement in the crypto markets. Just days ago, Skew analytics firm revealed that bitcoin options open interest on CME has rocketed 10X this month alone to a record high of over $140 million.
Bitcoin Investors About To See ‘Outsized Returns’?
After the halving that was completed recently, investors are now hoping for a mega bull market for a chance to rake in life-changing returns. Fortunately, according to Glassnode, this could happen sooner rather than later.
The on-chain market analysis firm observed that BTC’s Puell Multiple is now back in the green zone as a result of the reduced revenues for bitcoin miners. The last time this indicator was flashing green was in January last year, and it typically marks a great period for investors to accumulate in order to receive “outsized returns”.
Bitcoin is currently valued at $9,785.44, up 1.90% on a 24-hour adjusted timeframe.
Get Daily Crypto News On Facebook | Twitter | Telegram | Instagram
DISCLAIMER Read MoreThe views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.
