How high can BTC go in the ongoing bull run? This is a question in the minds of traders after the price of cryptocurrency jumped five times since October.
According to Bloomberg’s Bitom (BTC) analysts, the price could rise to $ 400,000 this year. Bullish forecast is based on the performance of bitcoin bull runs for 2017 and 2013.
“Our chart depicts BTC on a similar basis as the profit of approximately 55 times in 2013 and 15 times in 2017,” Bloomberg Crypto notes in a monthly report published this week. “To reach price extremes similar to those in 2021, the cryptocurrency will reach $ 400,000, based on the regression from the 2011 high.”
Although past performance is no guarantee of future results, history can repeat itself. The latest bullrun appears as a result of the halving award in May- automatically, every four years, a 50% reduction in the pace of new issuance of cryptocurrency units.
Bitcoin posted stunning gains 12 to 18 months after the previous halving in November 2012 and July 2016.
“The year after the cut in supply (by half) is what 2021 has in common with 2017 and 2013, along with subdued volatility,” BTC Bloomberg analysts wrote, adding that the peak in December 2017 was 50 times increase from the average observed price in October 2015
Risk-off asset and digital gold
Some observers fear that a faster rise in bond yields could reduce the attractiveness of inflationary hedges such as gold and BTC by pushing their prices lower.
However, Bloomberg analysts predict that BTC remains relatively resilient in the face of rising profitability.
“Rising real yields are an obstacle to gold prices, but less so for bitcoin, which is still in the price opening stage,” analysts said.
Junior Trader Mert Mustafa