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While being projected to grow further, the much-celebrated Bitcoin price at $40,000 may be the coin’s long-term support level on its way to new peaks in the future.
There seems to be no limit to the record Bitcoin is set to break as the first-ever digital currency has broken the $40,000 price benchmark for the first time in its more than a decade history. According to a Cointelegraph report, Bitcoin (BTC) broke the $40,000 price target on January 7th, marking a significant milestone for Bitcoin in the new year.
The bull run frenzy is ongoing and many people are past denying the potentials and capabilities of Bitcoin as a viable store of an asset with the potential to create wealth with its unstoppable price surges. While the coin ended the past year with more than 300% gain riding on the back of institutional adoption of the coin, the recent price movements suggest that Bitcoin is just getting started.
With Bitcoin breaking the record of a new all-time high of $20,000 just about a month ago, the coin has raced past new uncharted territories at $25,000, $30,000, $35,000, and now $40,000.
“Less than a month after Bitcoin broke through $20k its price has doubled to $40k. It’s now hard for anyone to deny we are seeing the maturation of a whole new asset class, This could be the ‘broadband moment’ for cryptocurrency – where every company and individual needs to think seriously about how they engage and interact with cryptocurrency,” said Sui Chung, CEO of CF Benchmarks, which is the FCA-regulated indices provider used by CME.
Bitcoin (BTC) Price May Form a Long-term Support at $40,000
While being projected to grow further by analysts including JPMorgan Chase & Co (NYSE: JPM), the much-celebrated Bitcoin price at $40,000 may well be the coin’s long-term support level on its way to new highs in the future.
Bitcoin has seen tremendous growth since it was created and while the big money guys seem to have accumulated the larger number of the coin in circulation, retail investors are also tagging along with the bullish rally by accumulating as much as they can. Many are optimistic that this buying momentum can set the stage for tremendous gains.
“Charts only tell the past and we’re in brand new territory. This bull run began at $10k and 10x the previous all-time high seems about the norm for a bitcoin bull cycle. So since we’re approaching the halfway mark with extreme momentum, outstanding volumes, and exceptional fundamentals, I see this as a stop on the road to a Bitcoin price that could possibly be around $100k,” said Mati Greenspan of Quantum Economics.
Boost from Joe Biden
With Democratic leader Joe Biden now certified as the winner of the November 3rd US Presidential elections, Bitcoin may well receive a new boost resulting from the monetary stimulus packages that appear to be top on the agenda for the incoming administration as noted by a Khaleejtimes report.
With plans to fight and push for a $2,000 stimulus package to ameliorate the impacts of the COVID-19 pandemic, more money will have to be printing, further devaluing the US Dollar, and eventually making a case for firms to turn to BTC as a hedge against the impending inflation
At the time of writing, one Bitcoin is trading at $38,793.94 having dropped from the $40,000 ATH price according to CoinMarketCap.