By
Steve Muchoki
May 6th, 2024
Just as BTC crossed the $50,000 milestone with a convincing rally backed by institutional players, analysts have turned bullish saying Bitcoin is all set to surge past $100K and above this year.
In an unprecedented price rally that has attracted enormous community interest, the world’s largest cryptocurrency Bitcoin (BTC) has hit a new all-time high above $52,000. At press time, the BTC price is trading at a price of $52,116 with a market cap of $970 billion. Bitcoin is short another 4% from here to become the world’s first trillion-dollar cryptocurrency asset.
The latest Bitcoin price rally comes amid strong institutional demand. On Wednesday, February 17, the world’s largest asset manager BlackRock announced its entry into Bitcoin (BTC). Although BlackRock hasn’t disclosed its exact investment, it called Bitcoin a favorable hedge against currency devaluation.
The latest BTC price rally triggered soon after Tesla Inc (NASDAQ: TSLA) announced its $1.5 billion Bitcoin purchase on February 8. Post that, Bitcoin price has surged nearly 30% to date. Over the last week, institutional as well as corporate interest in Bitcoin has spiked to new highs. Earlier on Tuesday, February 16, the CME Bitcoin futures trading volumes hit a record high of $5 billion, as per data by Skew Analytics.
CME #bitcoin futures most active day on record yesterday with $5bln+ trading pic.twitter.com/fdkIZDEbNL
— skew (@skewdotcom) February 17, 2021
The US central bank has been printing huge money over the last year to support the country’s pandemic-hit economy. While the Biden administration is planning for an additional $1.9 trillion stimulus, the concerns of currency devaluation and inflation have also spiked.
Institutional Interest and Further Prospects for Bitcoin (BTC)
While Bitcoin has crossed a very crucial milestone of $50,000 with a strong rally and giants like BlackRock making entry at such high levels, investors are curious as to where Bitcoin is heading from here. Popular analysts Peter Brandt notes that with the price surge above $50K, Bitcoin (BTC) has entered a parabolic advance.
Big picture $BTC
Bitcoin is undergoing its third parabolic advance in the past decade. A parabolic advance on an arithmetic scale is extremely rare – three on a log scale is historic pic.twitter.com/fyyM5Ws6N5— Peter Brandt (@PeterLBrandt) February 16, 2021
This is for the third time over the last decade that BTC is showing this move. Thus, looking at the historical patterns Bitcoin (BTC) won’t correct much and will set itself up for its next journey to $240,000. Validating it, on-chain data provider Glassnode states that Bitcoin is showing similar consolidation patterns as of January 2021. Thus, BTC fundamentals have improved simultaneously and it can find new support at $48K.
On the other hand, analysts are expecting the arrival of Bitcoin ETF in the US market this year. Earlier this week, digital asset manager NYDIG filed for a Bitcoin ETF with the US SEC. Besides, other players like Valkyrie and VanEck have also submitted their applications recently.
Canadian regulators have already started giving a green light to Bitcoin ETFs. Two Bitcoin ETFs have been approved over the last month by Canadian lawmakers.
With all the developments around the crypto market veterans are giving big targets for BTC in the long-term. Speaking to CNBC, Bitcoin bull and founder of trading analysis Todd Gordon said:
“We’re getting corporate and institutional players entering the market. I think the sky is the limit. I don’t want to be overly bullish, but just simple technical analysis, you don’t see resistance till about [$170,000]”.
Similarly, Morgan Creek Digital founder Anthony Pompliano said that BTC will rise to $1 million in the long term to become the reserve currency of the world.