Bitcoin has broken the psychologically significant $20,000 barrier. Is this a positive sign for the future or is the worst yet to come? Read what top analysts have to say about it.
Bitcoin has demonstrated strength for days: The number 1 cryptocurrency was able to move beyond the psychologically significant $20,000 mark and held there, except for a brief setback. It sets the course. A further correction cannot be ruled out. However, many industry observers are already showing hesitant optimism: Can the crypto markets recover and start a bull run in the next few weeks? A renowned analyst has now commented on this and outlined how things will continue for digital assets like Bitcoin.
Bitcoin: is it the worst yet?
The bad news first: Bitcoin (BTC), Ethereum (ETH) and Altcoins are not out of the woods yet. Chart experts even consider Bitcoin to be able to fall into the lower five-figure price range.
For example, top chain analyst Willy Woo (1 million followers on Twitter) comments: Previous cycles would have bottomed out only after about 60% of coins traded below their purchase price. BTC could therefore retreat to as high as $10,000 before a recovery begins. This is his “maximum pain” scenario.
“Previous cycles bottomed out when about 60% of coins were trading below their purchase price. Will we hit this again? I don’t know. The structure of this current market this time is very different.” – Willy Woo (@woonomic) 3 October 2022
However, he cannot say whether that will really happen – the structure of the current market is “completely different” this time. Right now, Bitcoin is trading at $20,270 after gaining 0.41% in the last 24 hours (Coinmarketcap.com data). The number 1 cryptocurrency is thus in line with the rest of the market – which is also largely flat: Ethereum (ETH), for example, is up 1%, Binance Coin (BNB) is up 0.11%, while Ripple’s XRP is up 1 .29%.
The best performer is currently the Ethereum Name Service (ENS), a naming system for Ethereum addresses: ENS converts easy-to-read Ethereum addresses (such as maxmustermann.eth) into machine-readable alphanumeric codes so they can be recognized by wallets such as Metamask. The service’s token is up +9.78% since yesterday – more than any other digital asset. But even with Bitcoin and Co. there are already bullish moves on the horizon. At least that’s what “Bloomberg Intelligence” top analyst Mike McGlone thinks.
Bitcoin may even overtake gold
In the latest Crypto Outlook report, Bloomberg Intelligence senior commodity strategist Mike McGlone points out, “Bitcoin, Ethereum and certain altcoins are poised to overtake all other assets when markets turn bullish again. The fact that commodities – the only major asset class that is increased in the first half of the year – may have reached a sustained high, has implications for the Bitcoin bottom.”
He continues: “As the economic situation improves again, we see the tendency for Bitcoin, Ethereum and the Bloomberg Galaxy Crypto Index to once again outperform most major assets.” Interest rate increases from more central banks than ever before are “a strong headwind”. But: In the second half of the year, Bitcoin’s potential to develop into a risk-free asset like gold and US government bonds may come into play. With corresponding consequences for the BTC process.
Banks are also bullish on Bitcoin
Apparently, several banks are also targeting strong Bitcoin performance in the near future. As “Bitcoin Magazine” writes, the willingness to invest among credit institutions is growing: according to this, the “largest banks in the world” have written to the Bank for International Settlements (BIS) and asked them to increase the upper limit of crypto. allocations from 1 to 5%. This equates to $9 trillion – capital that is then ready to be invested in Bitcoin. For comparison: Bitcoin currently has a market capitalization of around $388 billion.
“Previous cycles bottomed out when about 60% of coins were trading below their purchase price. Will we hit this again? I don’t know. The structure of this current market this time is very different.” – Willy Woo (@woonomic) 4 October 2022