After a two-month slide in the cryptocurrency market, the bulls are feeling emboldened again. Some market analysts see a $200,000 bitcoin price on the horizon.
Bitcoin’s latest market slide saw it reach up to $69,000 last November before a global crypto sell-off ensued. That bearishness continued through most of January before a recent tick higher heading into February.
That gave bulls more than enough real estate to run. The latest sell-off didn’t dash hopes of the leading cryptocurrency reaching levels of $100,000 despite it falling to under $45,000 in its most recent run lower.
In some instances, market analysts are shooting higher. Whether bitcoin can reach these price levels will depend on a confluence of factors.
Last year saw the capital markets welcome a bitcoin futures ETF in the U.S., which helped propel its run to an all-time high. Given that bitcoin is the proverbial rising tide that lifts all boats, a bull run in the whole crypto market ensued.
Wider adoption in the crypto space saw retail and institutional investors flocking towards these digital currencies with speculative gains in mind. The latest crypto sell-off may have shaken some investors, but digital currency pundits who stayed through the latest market tumult are starting to see prices rise again.
Rising inflation and geopolitical concerns in the current market are bringing some investors back. In order for bitcoin to reach stratospheric levels, it will need more of this as well as regulatory measures that will continue to fortify its position as a legitimate asset among all investors.
“The simplest way to see a big step-function occur in crypto, is getting existing investors in the U.S. — not new investors — to allocate to Bitcoin,” said Fundstrat global advisor Tom Lee during a CNBC interview. “Seventy six percent of the wealth in America is controlled by people over the age of 65. That’s nearly $100 trillion held by people that think Bitcoin is a hobby or things that people live in the basement play with. I think regulation could unlock a lot of that movement. Just imagine if 2% out of $100 trillion allocated to crypto, you could see a five-to-10, 15 times increase in total network value.”
For more news, information, and strategy, visit the Crypto Channel.
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