BTC, the world’s largest cryptocurrency, set a new all-time high to over $ 57,000 on the Kraken exchange.
Research firm Santiment revealed the bullish and bearish conditions for Bitcoin after the cryptocurrency reached its new peak with a 219% rally in the past 3 months. In the bullish scenario, Santiment points out that the BTC supply continues to fall on the leading exchanges. Therefore, the Bitcoin selling pressure continues to ease, allowing the rally to continue.
In the Santiment decline scenario, the funding rate in the BitMEX futures market shows that traders with short positions receive more incentives to bet on the lower BTC price.
In the midst of expectations, CryptoQuant CEO Ki-Young Ju has some predictions. Still considering Coinbase’s premium that went negative during the $ 56,000 rally, Young Ju said the purchasing power came from “stablecoin whales and retail investors.” As a result, Young Ju believes the price has shifted to an “unhealthy” zone due to the lack of new dollar inflows in the spot market.
In the long run, the increase in market volume indicates that Bitcoin may attract more interest from institutional investors. Accordingly, Bloomberg Intelligence Senior Strategist Mike McGlone approached Bitcoin with an “institutional perspective”; He predicted that in 2024 and beyond, Bitcoin will be more valuable than gold. McGlone believes it is “easy” for Bitcoin’s price to rise 4 to 5 times due to the 2020 Halving, increased demand, and a drop in new BTC issuance following macroeconomic conditions.
“In my opinion, there is no reason why we should keep a similar pace and not reach 2, 3 or 5 times (a price increase), which would be $ 100,000 (…). There is a perfect storm for higher prices. ”
As IntoTheBlock analyst Lucas Outumuro points out, Bitcoin has now reached 9.4% of gold’s market cap, which means that the price of Bitcoin has to increase more than tenfold to surpass gold. If that happens, Outumuro said each bitcoin would be worth an estimated $ 500,000:
“This is not expected to happen overnight, but rather as a generational paradigm shift. Generally exciting times for Bitcoin and blockchain. “