Bitcoin could scale greater highs after breaching $22,000 for the first time
The bitcoin buzz is all over the world. After breaching $22,000 this week for the first time, experts suggest that bitcoin has the capacity to go higher.
This week, on Thursday, Bitcoin rose to about 4.6%, that is to $22,173. But bitcoin has been known for its boom and bust which has led to a polarizing opinion on the future of the world’s most well-known cryptocurrency.
Proponents of bitcoin argue that the cryptocurrency is muscling in on gold as a portfolio diversifier amid dollar weakness and potential inflationary pressure. But reality check critics think that it would inevitably lead to a doom similar to the meltdown three years ago after a furious Bitcoin rally.
Still, the bitcoin fervor seems to be rallying up long term investors like asset managers and family offices along with the trend-following quant funds.
The reason for this zeal about the cryptocurrency can be attributed to bitcoin’s scarcity combined with “rampant money printing” by the Federal Reserve. This means the digital token should eventually climb to about $400,000, Scott Minerd, the chief investment officer at Guggenheim, said on Bloomberg TV on Wednesday.
Here’s what different experts are saying about the various aspects of bitcoin
On talking about the price of it, the “price will now go from linear to parabolic” in part because retail investors have so far largely been “out of this rally,” said Kay Van-Petersen, global macro strategist at Saxo Capital Markets Pte in Singapore. About the Federal checks, “The move above $20,000 has been coming and I’m probably a little surprised it didn’t come sooner,” said Craig Erlam, senior market analyst at Oanda Europe Ltd. “Fed stimulus may have given it an extra kick but, let’s face it, Bitcoin doesn’t need it. A break above $20,000 may bring the buzz and a strong end to the year.”
There is a comparison that’s being made about bitcoin and gold. According to Bloomberg Intelligence strategist Mike McGlone, ““The lowest-ever Bitcoin annual volatility measure versus gold and the stock market near the end of 2020 may sustain the crypto’s performance advantage in 2021,” He suggests that the price ratio of Bitcoin-to-gold headed for 100, if history is repeated, from its current level of around 12.