Bitcoin has been at the forefront of discussion after the cryptocurrency broke the US$10,000 mark — reaching an all new high of US$11,251 this year.
At the time of writing, bitcoin is sitting at US$11,071.60.
To put this in perspective, Forbes reported that bitcoin has recovered 50% of its losses after falling from its record high of US$20,000.
Renewed interest in bitcoin causes increase
Chief market analyst at Think Markets, Naeem Aslam, is predicting that bitcoin could reach as high as US$60,000–100,000 in its next bull run.
The renewed interest in bitcoin comes after the resurgence of mainstream media coverage of cryptocurrencies and the technology it brings with it. Aslam’s forecast combined with recent projects like Facebook’s Libra has given the crypto a much-needed boost.
The sheer amount of volume bitcoin has received over the weekend is showing that after the first bitcoin bubble burst, there wasn’t a lack of interest from investors. Instead, many investors were hanging back for the next bull run.
The crucial price points to watch for bitcoin are $20,000 and $50,000. Aslam says that once this price range is hit discussions will go beyond conservative estimates and exceed forecasts for $50,000.
Besides renewed interest, there’s other factors at play that are supporting the price of bitcoin. Naturally, the US–China trade war and the uncertainty it creates is playing a part. Take into account the lack of confidence in the stock market over the last two months and you can see why bitcoin is being used as a way to avoid risk.
Aslam also notes that recent growth in diversifying these crypto assets could come from unrest in the Middle East, and the prospect of war.
This is why bitcoin gets its label ‘digital gold’, as cryptos are a space many consider a ‘safe haven’ for storing wealth.
Bitcoin’s next rally to be stronger than ever before?
Whether bitcoin can rally again has been up for debate by many analysts. But in a world that favours technological advancement, it could only be a matter of time before we see cryptocurrencies such as bitcoin rebound.
What we are seeing from Google Trends, according to Aslam, is that bitcoin’s overall trend is still under the level it was in May this year. That means this new spike could have more to do with institutional participation.
According to Aslam, once retail investors are back on board with bitcoin, there’s no telling where the price could climb.
Meaning, this next rally could be bigger and stronger than what we have seen before, signalling a price range between $60,000–100,000.
It seems bitcoin is carrying all the enthusiasm that first drew investors to this space in the first place.
And it could be an investment that will benefit no matter the market outcome.
For Money Morning