With Bitcoin recently breaking a new all-time high, some analysts have discussed the possibility of the second leg of the bull-run that could take Bitcoin above the 100k figure. But, is this figure based more on hope than expectation? At the time of writing (12:00 pm), Bitcoin has rebounded from a weekend slump and trades at levels around $62,700. This is below the all-time high of around $66,800 which was recorded last week.
The first Bitcoin ETF has helped to ignite bullish momentum, but can this last? Some analysts believe we will see a similar bull run as was seen at the end of 2017. There does seem to be renewed retail interest and also institutional interest, but crypto markets have changed significantly since then. A JPMorgan client note stated that Bitcoin is ‘digital gold’, however, this sentiment was not reflected by CEO Jamie Dimon who called it ‘worthless’.
The digital gold argument is one reason why Bitcoin could reach $100,000. Inflation concerns are growing throughout the world with high energy prices and supply chain issues. Some investors see crypto as a hedge against inflation and uncertainty. The limited supply is enticing to investors who are wary about monetary policy which continues to devalue fiat currencies.
Another point of note is the number of options contracts expiring at the end of the year with strike prices above $100,000. This shows how traders are betting on Bitcoin going above this significant figure. A cryptocurrency research team at Standard Chartered is also predicting Bitcoin to reach this figure by early next year.
Not everyone is so bullish, however. Other analysts warn of a ‘double top’ formation which could see downside price pressures. There could also be significant profit-taking at higher levels. For now, bullish momentum remains across major cryptos. ‘Dog’ coins such as Doge and Shiba Inu have been some of the standouts this weekend.
Here is how major alt-coins were trading at the time of writing:
Ethereum was up 1.20% in 24 hours and trading at $4,140
Dogecoin was up over 7% in 24 hours and trading at $0.2666
Shiba Inu was up over 40% in the past 7 days and trading at $0.00003874
Ripple was up 0.65% in the past 24 hours and trading at $1.09