The main cryptocurrency has shown a sharp rise in quotes in recent days, rising above $65,000 for the first time since April. Against this background, the achievement of new historical highs is not far off. Will Bitcoin reach $100,000 this year, or is the market heading for a correction?
Bitcoin dynamics in September and October 2021
Source: app.stormgain.com
Reasons growth
In October, Bitcoin has already risen in price by more than 40%. The main reason for the rise of Bitcoin was the decision of the US Securities and Exchange Commission (SEC) to approve the ProShares Bitcoin ETF. It is based on the Chicago Mercantile Exchange (CME Group) Bitcoin futures and began trading on October 19 on the NYSE. This is a very long-awaited decision, because for a long time the SEC did not want to give its approval. Since 2013, other companies have also sought its consent, including Fidelity Investment, VanEck, One River and a number of others.
What will happen next?
With the current market price of Bitcoin at 66 thousand dollars and a capitalization of 1 billion dollars (which is more, for example, than billionaire Elon Musk’s Tesla electric car manufacturer), investors do not exclude the continued growth of this cryptocurrency.
The closest is the important psychological level of $70,000, but the most significant remains the $100,000 mark. Investors do not rule out continued growth of this asset up to this level. This opinion is expressed, for example, by Bloomberg's chief commodity strategist Mike McGlone.
On the one hand, this forecast is quite old (it was made back in 2017) and we can say that it did not come true, because the scientist predicted that Bitcoin would cross the $100,000 mark in February 2021. However, one cannot fail to note the negative impact of the coronavirus pandemic, which affected all financial markets, and which Denis Porto could not take into account in his calculations. Taking this into account, it can be assumed that if not for the pandemic factor, the price of Bitcoin could have passed the 100,000 mark back in February 2021.. Therefore, we did not discount this forecast.
In addition, there are many more optimistic forecasts regarding both 2021 and the longer term. The most optimistic forecast comes from Citibank analyst Tom Fitzpatrick. He believes that by the end of 2021, Bitcoin could be worth not much, not less than $318,000. At the same time, he warns that a sharp rise may be followed by a period of rather painful correction. And according to the famous trader Nicholas Merten, Bitcoin can reach 200,000 by November 2022.
Author: Dmitry Noskov is an expert at the StormGain crypto exchange (a platform for trading, exchanging and storing cryptocurrency)
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