Bitcoin Heads To New All-Time Highs

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Much like a year ago, Bitcoin appears poised to accelerate from 2021 with new all-time highs amidst greater adoption among retail investors and their institutional counterparts. But how big can BTC get? And is there anything left to block the path of cryptocurrency?

Of course, we’ve been in this situation before. In the spring, we saw Bitcoin hit an all-time high of $ 64,804.72 on April 14 about a month before it suffered a severe correction that saw over 50% of the asset value wiped off the market.

(Image: CoinGecko)

As we can see from the chart above, much of Bitcoin’s brand volatility has been in full swing over the past 12 months. However, the graph clearly shows that the end of October 2020 was the backdrop for a bull run after the halving that ultimately peaked with the all-time high for BTC.

Could October 2021 spark an equally memorable race? Let’s take a look at Bitcoin’s performance amid a new wave of investor optimism:

Towards support close to its historic highest level

Bitcoin recently hit a five-month high after breaking above $ 50,000, and the coin’s fundamentals indicate that many more benefits are poised to occur as BTC heads to its next resistance stage.

However, overbought signals indicate that a small pullback could take place on the way to BTC’s next resistance level, although this would only result in a return to its previous support levels between $ 50,000 and $ 52,000. .

With BTC’s next resistance level set just below the coin’s all-time high at just under $ 64,000, we may soon see the cryptocurrency enter price exploration mode within days and weeks at to come.

With that in mind, buyers will need to maintain support above $ 48,000- $ 50,000 to ensure the recent rally continues – which may be trickier as a result of market nervousness than the crisis in the market. ‘Evergrande has left on a range of assets.

Powered by greater adoption

2021 has been one of the most defining years in cryptocurrency’s short history. Along with the many all-time high values ​​recorded by Bitcoin, Ethereum, and many altcoins over the year, we also saw significant levels of adoption from retail investors and institutions.

Elon Musk has become a huge fan of cryptocurrencies, having not only invested $ 1.5 billion in BTC through his company Tesla, but also briefly implemented the acceptance of BTC payments for Tesla cars – before the environmental concerns later prompted Musk to withdraw the option. for the customers.

In October, it was revealed that Soros Fund Management now owns Bitcoin, with the CEO and Chief Investment Officer of the fund, Dawn Fitzpatrick, stating that “I’m not sure bitcoin is only seen here as a hedge against the inflation. I think he crossed the chasm to generalize.

It should also be recognized that El Salvador recently became the first country to accept BTC as legal tender, marking a turning point in the global adoption of crypto.

(Image: CoinDesk)

As the data above shows, we have also seen a significant increase in the number of small-scale investors in Bitcoin.

Wallet addresses with between 0.01 and 1 BTC went from 7 million to almost 8.5 million in less than 18 months. One of the main reasons for this growth in adoption is the expansion of financial technology which has made it much easier for investors to access cryptocurrencies.

Maxim Manturov, head of investment analysis at Freedom Finance Europe, adds that negative interest rates in countries like the United States have also played a role in the adoption of cryptocurrency through fintech apps like Robinhood.

“It is important to note that real interest rates in the United States have been negative for an extended period,” Manturov said. “Real interest rates are likely to remain negative even after the (likely) Fed rate hike in 2022. This is important because negative real rates contribute to higher trading and speculative activity in asset markets. To maintain their purchasing power despite negative rates, Americans will seek to generate income from stocks, cryptocurrencies, precious metals and other investments, and trading instruments. “

How far can Bitcoin go?

So what can Bitcoin accomplish on its current rally? Due to the extreme volatility of the cryptocurrency, the task of predicting the future value of Bitcoin can be extremely difficult, but market experts appear to be largely optimistic about the coin’s near-term outlook.

According to a recent report from a UK bank, Standard Chartered, Bitcoin could cross the six-figure price bar before the end of the year, reaching a price above $ 100,000. Interestingly, the bank believes the BTC rally will trigger an even more tantalizing bull run for Ethereum – the world’s second largest cryptocurrency – which Standard Chartered believes could reach $ 35,000 in value over the medium term, which represents growth of ten times that of assets. current value.

Billionaire venture capitalist and cryptocurrency investor Tim Draper has quite a more optimistic outlook for Bitcoin’s future – saying he expects the cryptocurrency to hit a price point of $ 250,000 by the end of 2022 or early 2023.

“I’m going to be really right or really wrong – I’m pretty sure it’s going in that direction,” Draper said. “Give it about a year and a half and the retailers will all be on Opennode, so everyone will accept bitcoin.”

Draper refers to the Bitcoin payment processor, Opennode, as an example of a growing technology that will further accelerate the adoption of cryptocurrencies. In a market driven by emerging technologies and widespread investor enthusiasm for the asset, a future Bitcoin price of $ 250,000 may well be closer than we think.

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