Could Bitcoin be $ 60,000 on the way back? These analysts think so
Could Bitcoin be $ 60,000 on the way back? These analysts think so
Since BTC has fallen under $ 40,000 for the first time since August last year, BTC has put a comeback that analysts now believe that it will be the catalyst who will fight back to previous highs.
According to Craig Erlam, a senior market analyst at Oanda, Bitcoin only needs momentum. In his daily newsletter, he explained:
If Bitcoin can break through $ 45,500, we could see another strong movement upwards, since the belief begins to grow that the worst of the defeat is behind it.
tailwind for Bitcoin are the increasing economic uncertainty, the high inflation and a decline in the US dollar index, which has fallen by almost 1 percent last week. A decline in this index is usually a good sign of assets that are considered risky, and Bitcoin has fallen directly into this category in recent months.
Lennard Neo, head of research at Stack Funds, an investment company for cryptocurrencies, said:
Bitcoin has recently behaved as a risk system in the middle of market uncertainties. The markets are still split when BTC is an inflation protection or risk system, and expect more volatility in the face of the current macroclimate.
Neo's comments enliven a debate that rages in the BTC community-is Bitcoin a protection against inflation or is it a risky asset? Over the years, the narrative that BTC is digital gold was a consolation in view of the market conditions. Many companies have bought BTC worth millions of dollars based on this story, including the always bullish microstrategy.
See also: "Sell all 10 trillion dollars gold and buy Bitcoin," advises Michel Saylor, CEO from Microstrategy
But the data of the past few days draw a different picture. Bitcoin is strongly associated with risky assets, with its price movements correlate with the normal macroeconomic conditions. For example, when the US Federal Reserve recently announced that it would drive her money injection back to the economy, risky assets were faced with a sale and Bitcoin was not excluded. In fact, this was a key factor for the decline under $ 40,000 at the beginning of the week.
Source: Crypto-news-flash.com
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