Although the price of bitcoin has dropped in recent days as the leading cryptocurrency currently hovers around $ 32,000, it still shows strong technical data as well as nearly 40% price increases in thirty days. Not only that, but even after the most recent recession, when digital assets fell from a recent high of around $ 42,000 to their current value, the cryptocurrency has remained green for the past twelve months, indicating a peak in value. About 300%.
Since the last quarter of 2019, a number of traditional financiers have expected tremendous success from Bitcoin (BTC), especially as governments around the world continue to print cash in the form of “economic stimulus packages”, raising fears of rising inflation. Large-scale, but also due to an impending economic disaster that could lead to a global recession of unprecedented proportions.
For example, in the second quarter of 2020, the U.S. economy contracted at a unique pace as the gross domestic product of the global energy hub, which determines the country’s gross product and services, declined by 31.4%.
As a result of these developments – including the alarming volume of money printed by central banks around the world – many investment companies and banking institutions are now beginning to see a future for bitcoin, especially as a hedge against monetary inflation, despite current levels of volatility. … …
Many organizations see over $ 100,000 in BTC.
Earlier this year, JPMorgan Chase, a senior US banking strategy group led by Nikolaos Bangercoglu, said that a theoretical target of $ 146,000 could be sustainable for Bitcoin by the end of 2021, leading to the idea that digital currency is a candidate. The key is to replace gold as a long-term value, especially for a thriving base of young tech-savvy investors.
Likewise, new data released by investment firm and hedge fund Pantera Capital JPMorgan reflects its view of BTC, indicating that price action closely follows the Stock-to-Flow pattern, confirming confidence that the digital asset will hit $ 115,000. … By August 1st.
The S2F model developed by PlanB looks at the BTC halving events that occur approximately every four years and how they play a direct role in stimulating the value of a currency approximately six months after each cycle. In this regard, it can be seen that Bitcoin has shown noticeable gains after each of the previous three halves. For example, after the Bitcoin price was halved in May 2020, the price of 1 BTC was set at $ 8,000 and exceeded the $ 15,000 threshold exactly six months later.
Raiffeisen also used the S2F model in a recent report to determine where Bitcoin might be heading in the near future. According to the research group, the company could achieve target prices in excess of $ 100,000 or even $ 1 million. “In fact, this value has more than tripled in 2020, progress is still important, and future developments should not surprise us,” the study says.
Other notable players from traditional economies who have raised BTC’s rankings significantly in the short term include people like Andy Yee, director of a Chinese cross-border visa provider, who believes this rally is different from the 2017 rally when tokens are high. Speculative and ineffective for Bitcoin and Ether (ETH).
Likewise, Thomas Fitzpatrick, head of marketing at CitiFX Technicals in the US, said in a special report leaked online that the price of bitcoin could rise to around $ 318,000 in December.
Fictional Expectations or Imminent Reality?
While S2F was the first among the few technical indicators that pointed to Bitcoin’s astronomical rise, it now seems like a growing number of experts and analysts are starting to see the technology supply and cash that BTC and other cryptocurrencies are propelling.
Sam Tabar, co-founder of Fluidity – the company behind the trading platform AirSwap – and former head of capital strategy at Merrill Lynch, told Cointelegraph that everyone should remember that optimism about BTC is not nonsense at this point because speculation is now supported by real substance. … He adds:
Bitcoin is not controlled by any person or country. Instead, it obeys the simple laws of supply and demand. […] Bitcoin has two sides of the same coin: on the one hand, it is the global currency and then digital gold. ”
As an alternative to the global currency, friction over buying cryptocurrencies has dropped dramatically as getting bitcoin is easier than ever. Likewise, Tabar believed that Bitcoin was being used as a barrier against him.