Vijay Valecha, Special to Khaleej Times May 16, 2021
The bull run and rally in Bitcoin and other cryptos is certainly not going to slow down despite the 15 per cent dip in the most popular digital asset’s value to below the $50,000 mark last week, experts say.
Analysts said the overall momentum for the crypto space remains strong despite the recent correction and Bitcoin has the potential to hit the $100,000 mark during the second half of this year.
“Putting short-term volatility aside, Bitcoin could easily touch the $100,000 mark by next year or even by the end of 2021. I’m not alone in making this price prediction as Gordon Einstein, who is the founding partner at CryptoLaw Partners, also believes that Bitcoin could touch $100,000 and one of the reasons is due to Bitcoin being decentralised and the price is determined by the market, not by a CEO or official body,” Eman Pulis, group founder at Sigma, told Khaleej Times.
Bitcoin was pinned near its lowest in more than two months on Friday and recorded worst week since February. It remains about 70 per cent higher for the year and is more than 1,000 per cent higher than its 2020 low of $3,850.
Bitcoin has been strugglling since hitting a record $64,895.22 in mid-April. It was down nearly 15 per cent during the last week at $49,804.
The second-biggest cryptocurrency, Ether, has also soared more than 400 per cent this year. It last sat at $3,865, steady during the last week so far.
New peak in sight?
“With all these significant movements, $80,000-$100,000 is a fair trading range. However, there is still potential for it to smash through this range and even reach, let’s say $250,000 or even $500,000, if this bullish market continues. What is certain is that Bitcoin’s popularity is nowhere close to slowing down and its acceptance into our every day life could drive it to a trading price no one would of imagined a year ago, or even now,” Pulis said.
He said Bitcoin has just come off a record-breaking 2020 with significant barriers being surpassed continuously. The start of the year also saw Bitcoin smash through the $60,000 mark, which was a massive milestone for the digital asset. However, the following months saw a minor dip.
“Due to this dip, I expect another pump in Bitcoin’s price in the second half of the year. Massive corporations are backing the digital asset, such as PayPal and Morgan Stanley, among others, while cryptos’ popularity continues to rise in other spaces.”
Elaborating, he said Miami is looking to become the crypto capital of the world by paying workers in Bitcoin while Premier League club Southampton FC has decided to pay their players’ bonuses in the asset.
“There will definitely be more movements like this in the second half of the year that will push Bitcoin towards the mainstream, and therefore it is looking extremely positive for the world-famous digital asset,” he said.
“I do think Bitcoin is due for another bull run, which could see it propel to between $80,000-$100,000. One of the reasons I believe in this range is due to Bitcoin becoming the third most powerful currency in the world, according to Deutsche Bank.”
Impossible to ignore
Pulis said the market cap of Bitcoin is just too impossible to ignore and with major players joining the market, the price is set to rise. “Obviously, there are factors that may pull the price down or slow its progress but the future of Bitcoin is looking more positive as the days go by,” he said.
“The bull run and rally in Bitcoin and other cryptos is certainly not going to slow down despite the 600 per cent increase in price and due to giant corporations joining in such as PayPal, JPMorgan and Morgan Stanley, as well as sports associations like the NBA and NFL, Bitcoin has gained millions of supporters,” he said.
Buy on dips
Edward Moya, senior market analyst at Oanda, said cryptocurrencies had been ripe for a pullback.
“The market has become overly aggressive and bullish on everything. It could have been any bearish headline that could have triggered this reaction,” he said.