By
Steve Muchoki
April 19th, 2024
Bitcoin price adds 5% hitting $10,500 levels. Meanwhile, a new report from Delphi Digital describes current trends in the global economy that could serve as a catalyst that should propel BTC price even higher.
At the time of writing Bitcoin price went up 5.21% passing its psychological level of 10k – now worthy $10,528.17. It seems it is going to test next key resistance at $11,120 during the weekend with the daily chart indicators beginning to align in favor of the bulls.
Meanwhile, a new report from digital asset research firm Delphi Digital says ongoing trends in the global economy could lead to a “perfect storm” for the price of Bitcoin. Their May Bitcoin Outlook report already had indicated a return of a bull market in Bitcoin right before the price more than doubled over the next two months.
As per the latest report, factors as monetary mitigating and the potential for an economic decline in the near future have made the “digital gold” chronicle around Bitcoin more relevant than ever. However, it’s unknown what would exactly happen with the Bitcoin price if it comes to a global recession.
Bitcoin (BTC) is called the “King of the Assets Class Hill” because of its outstanding performance in recent months. The truth is that it had four straight bullish months and its performance in May was so impressive that the firm said:
“XMay’s outperformance has been especially important given the broader weakness across many other asset classes.”
As perhaps the most important macroeconomic factor that will affect the Bitcoin price comes monetary easing.
The report says:
“First, and arguably most important, sentiment from global central banks took a drastic turn towards more dovish monetary policies,” says the report. “The Fed, ECB, BOJ, PBOC, and many others are now preparing market participants for more rate cuts and additional stimulus measures as they attempt to keep the current economic expansion going.”
It adds that the rising risk of currency devaluation, especially among reserve currencies, is a longer-term catalyst that should propel BTC higher along with gold.
This new report follows a claim from Pantera CEO Dan Morehead who pointed to a potential Bitcoin price move to $356k within three years based on past trends of BTC price movements on a logarithmic scale. Morehead’s math also indicated that Bitcoin price targets $42k in 2019.
Just for a reminder, he added that it’s important to remember that Bitcoin and the technologies around it are a project that will take two decades to unfold and that we’re only ten years into it at this point. He added that there is still approximately ten years to go before this is fully realized.
Founder and CEO of Digital Michael Novogratz said that he expects Bitcoin to consolidate in the $7,000–$10,000 range. He stated:
“If I’m wrong on that, I think I’m wrong to the upside, that there’s enough excitement and momentum that it could carry through.”
This longtime crypto bull said he doesn’t ever expect to see Bitcoin being below $5000 again and will grow increasingly fearful if it unexpectedly begins to slide toward that level.
“I think if it goes below $8,500, I’ll get nervous. If it goes below $6,000, I’ll get really nervous.”
Will #btc ever go back to $5K? “I don’t think so. I think if it goes below $8,500 I'll get nervous. If it goes below $6,000 I'll get real nervous,” says @Novogratz pic.twitter.com/oWMdGTtZYU
— Squawk Box (@SquawkCNBC) August 1, 2019
He for sure seems to be right because even though the U.S. Congress tried in any way to belittle all cryptocurrencies, senator Mike Crapo recently admitted that the US government couldn’t stop the Bitcoin protocol.
Novogratz, for his part, said that banning bitcoin won’t be necessary as long as it competes with gold, not the mighty US dollar. He said:
“Know your customer and anti-money laundering is being…strictly enforced here in the US and Europe. The good news is there are lots of institutional players that are coming into the space that [are] going to make access much easier for credible players.”