Based on a slew of recent predictions, bitcoin prices could more than double this year to $20,000. Or go to$250,000 by early 2023. Or$300,000 within five years.
Whatsconfounding cryptocurrency traders now is the wide gap between suchlofty forecasts and the banal reality: Since late April,bitcoin has traded in a range between roughly $8,500 and $10,200.
Thursdays market action was no different, with prices rising 1.3% to about $9,800. The highest in two days. Not much to get excitedabout.
Youre readingFirst Mover, CoinDesks daily markets newsletter. Assembled by the CoinDesk Markets Team, First Mover starts your day with the most up-to-date sentiment around crypto markets, which of course never close, putting in context every wild swing in bitcoin and more. We follow the money so you dont have to. You cansubscribe here.
The newest forecast attracting chatter, onTwitterandelsewhere, emerged this week when analysts at Bloomberg predicted, based largely on an analysis of historical trading patterns,that bitcoin prices would approach$20,000 later this year.
A jump to thatlevel would bring bitcoin back to its December 2017 all-time-high of $20,089. Clearing the thresholdwould represent a remarkable comeback for bitcoin, and itwould reset many of the conversations around the market. Imagine the daily breathlessheadlines in both cryptocurrency-and Wall Street-focusedmedia as the 11-year-old digital asset charted new price records.
A glance at bitcoins price chart since early 2017 shows how far off bitcoin remains from that$20,000 threshold. But it also shows how rapidly the price ran up in 2017. In the volatile bitcoin market, its hard to rule anything out.
Greg Cipolaro, co-founder of the cryptocurrency analysis firm Digital Asset Research, says predicting prices for bitcoin has been notoriously difficult.
Its a highly volatile asset with not a lot of understanding of valuation and pricing frameworks, Cipolaro said in a phone interview. People kind of throw darts at a dart board. Sometimes theyve been proven to be wildly low, and sometimes wildly optimistic.
Whats easier to predict, according to Cipolaro, is where prices are headed more generally. He says hes bullish.
The current backdrop,the macroeconomic and social and political divide that were experiencing, all point to a non-sovereign-backed store of value, and that is something like bitcoin, Cipolaro said.
Maybe thats the right approach. Such finger-in-the-wind forecasts areincreasinglythe modus operandi on Wall Street these days.
The Standard & Poors 500 Index isnow close to its 2019 year-end level, even though the coronavirus and related lockdowns have pushed the global economy into its worst contraction since the 1930s, hitting corporate profits anddriving large retailers into bankruptcy. Unemployment is soaring.
Some commentators on U.S. stocks argue that valuations arent really supported by the fundamentals, but by a belief that governments and central banks like theFederal Reserve will pull every official lever to keep share prices from falling. The implication is that stocks might have little downside, but little upside either.
With bitcoin, there are naysayers of course. Goldman Sachss money-management division wrote last week thatbitcoin is not a suitable investment. The billionaire investor Warren Buffett said in February that bitcoin has no value.
But to professional crypto analysts, the downside risks are far more mundane. Nicholas Pelecanos, head of trading at NEM Ventures, said in an email that bitcoin prices could fall toward $7,000 if they break below the $8,500 mark. Not exactly catastrophic, given that prices have often traded below $7,000 over the past six months.
And theres a lot to talk about when it comes to theupside.
The European Central Bank on Thursday announced it would inject as much as 600 billion euros more into financial markets than previously promised, potentially bolstering bitcoins use as a hedge against inflation.
CoinDesks Zack Voell reported on Thursday that bitcoin isincreasingly being used in tokenized formwhen transacting ondecentralized-finance networks on the Ethereum blockchain. A fast-growing use case, as it were.
CryptoCompare, a London-based data aggregator, said Thursday in a report thatcryptocurrency derivatives volumes surged to a record $602 billion in May.
And CoinDesks Wolfie Zhaoreported Thursday that the Bitcoin blockchainunderwent an automatic adjustment that will make iteasier to minenew units of the cryptocurrency, theoretically luring more operators back to the network to keep its distributed ledger secure.
Mati Greenspan, of the foreign-exchange and cryptocurrency-analysis firm Quantum Economics, says the milestone could catapult bitcoin into the next wave of its price cycle. The adjustment comes roughly a month afterbitcoins once-every-four-years halving, which cut bitcoin rewards for miners in half.
Though we only have two examples of previous halving events, the price began to rise approximately one month after the event, begging a brand new massive bull run each time, Greenspan wrote in an e-mail to clients.
Bitcoinmay not go to $300,000. It may not even go to $20,000.
But the base case for now is that the price is likely to go up. First it needs to get past $10,000.
Tweet of the day
Bitcoin watch
BTC: Price: $9,738 (BPI) | 24-Hr High: $9,875| 24-Hr Low: $9,472
Trend: A key bitcoin price indicator continues to call a bullish move despite the cryptocurrencys recent failure to keep gains above the $10,000 mark.
The weekly charts moving average convergencedivergence (MACD) histogram is producing higher bars above the zero line, indicating a strengthening of upward momentum. Its now reporting a value of 282 the highest since mid-July 2019. Put simply, the indicator is currently suggesting the strongest bullish bias in 11 months.
While the MACD is based on backward-looking moving average studies, it has proven its fortitude in the past by marking the beginning of bullish trends with a cross above zero. For instance, the MACD crossed above zero in mid-February 2019 and began climbing above zero well before the cryptocurrency broke into a bull market with a 26% rise in the first week of April 2019. Similarly, the bearish trend seen in the second half of last year began after the MACD moved back below zero.
The weekly charts relative strength index is also signaling bullish bias with an above-50 reading, while the daily chart is flashing agolden crossover, a long-term bull market indicator.
Multiple long-tailed candles seen on the hourly chart show persistent dip demand near the 200 hour average, currently at $9,581. The immediate bias will remain bullish as long as prices are holding above that level.
All in all, the charts seem to have aligned in favor of a re-test of $10,000. The cryptocurrency was rejected above that hurdle on Tuesday, falling sharply by $800 in just five minutes. As a result, some analysts say a sustained move above $10,000 is required to restore the rally from the March low of $3,867.
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
Here is the original post:
First Mover: Bloomberg's Pie-in-the-Sky Bitcoin Call Looks Directionally Defensible - CoinDesk
- Bitcoin Just Did Something It Has Only Done 3 Times Before. The Cryptocurrency Usually Does This Next. - The Motley Fool - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency Market News: Bitcoin Halving Steadies Price, Network Transaction Fees Spike - Investopedia - April 25th, 2024 [April 25th, 2024]
- Bitcoin Just Did Something It Has Only Done 3 Times Before. The Cryptocurrency Usually Does This Next. - Yahoo Finance - April 25th, 2024 [April 25th, 2024]
- 10 Best Cryptocurrencies To Buy In April 2024 - Forbes - April 25th, 2024 [April 25th, 2024]
- Movement Labs raises $38 million to build layer 2 blockchain on Ethereum with Facebook tech - Fortune - April 25th, 2024 [April 25th, 2024]
- Cardano Founder Charles Hoskinson Reiterates Core Purpose of Cryptocurrency Here's What You Need to Know - Cryptonews - April 25th, 2024 [April 25th, 2024]
- From Cryptocurrency to Cannabis: 7 Penny Stocks on the Rise - InvestorPlace - April 25th, 2024 [April 25th, 2024]
- South Carolina: Cryptocurrency scams on the rise in Upstate - WYFF4 Greenville - April 25th, 2024 [April 25th, 2024]
- Binance BNB Memecoin Traders Join 100X New Cryptocurrency On Uniswap - Yahoo Finance - April 25th, 2024 [April 25th, 2024]
- The Future of Real Estate: Investing in Tokenized Properties with Cryptocurrency - ForexLive - April 25th, 2024 [April 25th, 2024]
- The Current Position with Cryptocurrency Regulation in the United States - Latest Cryptocurrency Prices & Articles - April 25th, 2024 [April 25th, 2024]
- 3 Must-Know Facts About Ethereum, Before You Buy the Cryptocurrency - The Motley Fool - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency: 3 Meme Coins To Watch In May for Exponential Gains - Watcher Guru - April 25th, 2024 [April 25th, 2024]
- EOS Falls 14% In Bearish Trade By Investing.com - Investing.com - April 25th, 2024 [April 25th, 2024]
- The UItimate Cryptocurrency to Buy With $1,000 Today - The Motley Fool - April 25th, 2024 [April 25th, 2024]
- Romance scams involving AI images, cryptocurrency on the rise in Chicago - CBS Chicago - April 25th, 2024 [April 25th, 2024]
- Bitcoin Halving Event Of 2024: The Aftermath Forbes Advisor Australia - Forbes - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency Ethereum Classic Down More Than 4% Within 24 hours - Benzinga - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency: Top 3 Coins To Buy Now For 10X Gains In 2024 - Watcher Guru - April 25th, 2024 [April 25th, 2024]
- What's going to be different with the halving of Bitcoin this time? - Euronews - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency OKB Decreases More Than 3% Within 24 hours - Benzinga - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency OKB Decreases More Than 3% Within 24 hours - Investing.com UK - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency Kaspa Falls More Than 3% In 24 hours - Benzinga - April 25th, 2024 [April 25th, 2024]
- BRICS To Replace US Dollar With Cryptocurrency for Trade - Watcher Guru - April 25th, 2024 [April 25th, 2024]
- Bitcoin Halving Sparks Unprecedented Transformation in Cryptocurrency Market - West Island Blog - April 25th, 2024 [April 25th, 2024]
- Influential Analyst on YouTube Shares High-Potential Cryptocurrency That Could Beat Shiba Inu (SHIB) and Dogecoin (DOGE) Gains in This Bull Run -... - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency Uniswap Up More Than 3% In 24 hours By Benzinga - Investing.com UK - April 25th, 2024 [April 25th, 2024]
- Bitcoin is halving again what does that mean for the cryptocurrency and the market? - The Conversation - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency Ethereum Classic Down More Than 4% Within 24 hours By Benzinga - Investing.com UK - April 25th, 2024 [April 25th, 2024]
- RackNerd Expands Cryptocurrency Payment Options with Coinify Integration, Accepting Over 30 Cryptocurrencies - PR Web - April 25th, 2024 [April 25th, 2024]
- What Meltdown? Crypto Comes Roaring Back in the Philippines. - The New York Times - March 18th, 2024 [March 18th, 2024]
- Chinas cryptocurrency investors made gains of US$1 billion in 2023 - South China Morning Post - March 18th, 2024 [March 18th, 2024]
- 1 Super Cryptocurrency Could Soar to $200,000 by 2025, According to a Wall Street Analyst - The Motley Fool - March 18th, 2024 [March 18th, 2024]
- Cryptocurrency Miners Need to Report their Energy Use - Earthjustice - March 18th, 2024 [March 18th, 2024]
- Understanding the Fundamental Differences Between Cryptocurrency and Fiat Currency - FinSMEs - March 18th, 2024 [March 18th, 2024]
- SOL Flips BNB, Becoming 4th Largest Cryptocurrency as Ethereum Becomes Next Target - CCN.com - March 18th, 2024 [March 18th, 2024]
- Prosecutors seek from 40 to 50 years in prison for Sam Bankman-Fried for cryptocurrency fraud - The Associated Press - March 18th, 2024 [March 18th, 2024]
- Cryptocurrency: 3 Meme Coins That Could 15x This Bull Season - Watcher Guru - March 18th, 2024 [March 18th, 2024]
- Can the Bitcoin surge push India to overcome its cryptocurrency hurdles? - The National - March 18th, 2024 [March 18th, 2024]
- The Ultimate Cryptocurrency to Buy With $1,000 Today - Yahoo Finance - March 18th, 2024 [March 18th, 2024]
- Cryptocurrency laundryman gets hung out to dry - The Register - March 18th, 2024 [March 18th, 2024]
- Bitcoin price predictions: How much more could it rise in 2024? - Euronews - March 18th, 2024 [March 18th, 2024]
- Shiba Inu Is Skyrocketing: Is It a Top Cryptocurrency to Buy Right Now? - Yahoo Finance - March 18th, 2024 [March 18th, 2024]
- 1 Top Cryptocurrency to Buy Before It Soars 1,328%, According to Cathie Wood of Ark Invest - The Motley Fool - March 18th, 2024 [March 18th, 2024]
- The other Bitcoin rally: How scams are cashing in on the cryptocurrency fever - EL PAS USA - March 18th, 2024 [March 18th, 2024]
- Kalshi Prediction Market To Introduce Cryptocurrency Betting (Payouts In USD) - Blockchain Magazine - March 18th, 2024 [March 18th, 2024]
- Bitcoin Hits Record $72,000, Emboldening Crypto Industry - The New York Times - March 18th, 2024 [March 18th, 2024]
- Solana (SOL) Flips BNB to Become 4th Largest Cryptocurrency - Watcher Guru - March 18th, 2024 [March 18th, 2024]
- Predicting which Cryptocurrency will Boom in 2024 - ForexLive - March 18th, 2024 [March 18th, 2024]
- Nigeria's Cryptocurrency Crackdown Will Have Consequences, Experts Say - Voice of America - VOA News - March 18th, 2024 [March 18th, 2024]
- Crypto ETN providers head for UK but urge rethink on retail ban - Financial Times - March 18th, 2024 [March 18th, 2024]
- Trump Signals Positive Stance on Cryptocurrency If Elected to the White House - Yahoo Finance - March 18th, 2024 [March 18th, 2024]
- Bitcoin Bulls vs. Bubble Bears: A Cryptocurrency Clash - Crypto Times - March 18th, 2024 [March 18th, 2024]
- Imprison crypto fraudster Bankman-Fried 40 to 50 years, say feds - New York Daily News - March 18th, 2024 [March 18th, 2024]
- Is This The Best Cryptocurrency to Buy With $1,000? - Analytics Insight - March 18th, 2024 [March 18th, 2024]
- How Immortalboost.com Connects Gamers and Cryptocurrency - TheXboxHub - March 18th, 2024 [March 18th, 2024]
- Avalanche (AVAX) Created Millionaires, Here's The New A.I Exchange Cryptocurrency Predicted Huge Gains In 2024 - Analytics Insight - March 18th, 2024 [March 18th, 2024]
- Solana volume leapfrogs Ethereum as memecoin frenzy seen sending price to $415 - DLNews - March 18th, 2024 [March 18th, 2024]
- Bitcoin alternatives, from Ether to Dogecoin - Quartz - March 18th, 2024 [March 18th, 2024]
- Cryptocurrency Price on March 12: Bitcoin trades near $72,000; Toncoin, Avalanche jump up to 34% - The Economic Times - March 18th, 2024 [March 18th, 2024]
- Cryptocurrency: 3 Coins To Watch Under $1 as Bitcoin Hits $56,000 - Watcher Guru - February 27th, 2024 [February 27th, 2024]
- The Ultimate Cryptocurrency to Buy With $1,000 Today - The Motley Fool - February 27th, 2024 [February 27th, 2024]
- The vast Ponzi scheme that is cryptocurrency - The Pasadena Star-News - February 27th, 2024 [February 27th, 2024]
- Exploring the World of Global Cryptocurrency Exchanges - Indiana Daily Student - February 27th, 2024 [February 27th, 2024]
- Cryptocurrency Prices And News: Bitcoin Price Hits 27-Month High Above $57000 - Investor's Business Daily - February 27th, 2024 [February 27th, 2024]
- 7 Best Cryptocurrency Investing Strategies | Investing | U.S. News - U.S News & World Report Money - February 27th, 2024 [February 27th, 2024]
- Cryptocurrency fraud costs: $1.56 billion in 2023 - Accounting Today - February 27th, 2024 [February 27th, 2024]
- Expanding Horizons: WDC Quantify's 2024 Plan to Revolutionize Cryptocurrency Trading and Investment - Morningstar - February 27th, 2024 [February 27th, 2024]
- BC Court Upholds Temporary Freeze on Cryptocurrency Mining Connections to BC Hydro Grid - BlockTribune - February 27th, 2024 [February 27th, 2024]
- Texas Blockchain Council and Riot Platforms Win Temporary Restraining Order Against DoE Cryptocurrency Mining ... - BlockTribune - February 27th, 2024 [February 27th, 2024]
- Bitcoin price passes $57,000 to hit 2-year high - Quartz - February 27th, 2024 [February 27th, 2024]
- More from Fed's Schmid: Would be a mistake to consider cryptocurrency as a currency - ForexLive - February 27th, 2024 [February 27th, 2024]
- 1 Top Cryptocurrency to Buy Before It Soars 4,500%, According to Cathie Wood's Ark Invest - The Motley Fool - February 27th, 2024 [February 27th, 2024]
- Cryptocurrency: 3 Coins That Could Surge in March - Watcher Guru - February 27th, 2024 [February 27th, 2024]
- Blockchain Unveiled: Beyond Cryptocurrency Lies a World of Opportunity - AutoGPT Official - AutoGPT - February 27th, 2024 [February 27th, 2024]
- Updated Bitcoin prices outlook for 2024 By Investing.com - Investing.com - February 27th, 2024 [February 27th, 2024]
- Suspicious Activity Surrounds BitForex Cryptocurrency Exchange The Merkle News - The Merkle Hash - February 27th, 2024 [February 27th, 2024]
- Donald Trump's Cryptocurrency Portfolio Tops $5M, Thanks to $2.9M in Trump-Branded Tokens Bitcoin News - Bitcoin.com News - February 27th, 2024 [February 27th, 2024]
- Matthew Perry's X account hacked and soliciting cryptocurrency donations through fraudulent site - MSN - February 27th, 2024 [February 27th, 2024]
- Bitcoin: Here's why the flagship cryptocurrency keeps soaring - Cointribune EN - February 27th, 2024 [February 27th, 2024]