Aren’t you glad you kept that Bitcoin? I know I am.
Even with the recent decline from its highs, coming close to $20,000, investors have been bullish. Is it going to $50,000? Nope. It’s going to $500,000, some on the Street have told me (hint: she runs a big, innovative ETF). These are the wild speculative prognostications that make Bitcoin what it is. But keep it. Even if it goes to $5,000 again. We’ve seen that what comes around, goes around.
It took over 1,000 days since Bitcoin hit its previous all-time high, recorded in December 2017.
“We are buyers at this price as we believe Bitcoin will appreciate over the short-, medium- and long-term,”says Daniel Wolfe, fund manager at the Simoleon Long Term Value Cryptocurrency Fund, which he runs in partnership with SPRING, a Moscow-based investment firm. “Taking a three to five year view and dollar cost averaging into a position that represents around 5% of your portfolio is prudent today.”
Okay, but are we at liftoff yet? You know, that Bitcoin Moon thing.
“The next nine months will bring substantial appreciation for Bitcoin,” Wolfe thinks. “I would not be surprised to see $50,000 next summer. Within four years, we expect the capitalization of all cryptoassets to grow five-fold, with Bitcoin at $100,000,” he told me last week.
There are a number of factors driving the stellar rise of Bitcoin this year. Microstrategy
The availability of institutional-level infrastructure has eased their entry: Fidelity’s custody solution is one example. Second, the so-called halving of the BTC reward (since May 11 each block carries a 6.25 BTC reward in lieu of the 12.5 BTC reward before the halving) means that more of the new demand must be satisfied on the open market as miners cannot keep up.
Historically, the halving has led to a new peak in the BTC price 13-15 months after the reduction in the BTC reward.
Buying and holding BTC has become easier for retail investors. PayPal
“I think the reason behind the growth is the dollar which we foresee weakening against other reserve currencies. Any respectively stable assets and property are the most attractive investment,” says Nikita Zuborev, head of marketing at the 13-year old BestChange.com, a free Russian exchanger aggregator.
“The market for cryptocurrencies has changed,” Zuborev says. A lot of derivatives,…
Read more:Aren’t You Glad You Kept Your Bitcoin? Don’t Sell It.