Bitcoin (BTC) price peaked at $52,640 on Wednesday, touting a new all-time high. With the largest cryptocurrency surpassing the $50,000 mark, Bitcoin (BTC) is now valued higher in gold than at any time in its history. Various reactions trailed BTC’s conquest of the $50k level:
‘The time for $50k $BTC has come’ stated analyst Josh Rager, Blockstream CSO Samson Mow declared “$50,000 #Bitcoin is the new normal,”.
The primary question remains whether Bitcoin will sustain this run higher. In this case, the $55,000 level and possibly even $63,000-$65,000 will be the next targets if BTC price continues its climb higher.
A recent report cited the fact that global banking institutions have shown more interest in Bitcoin (BTC) as the lead asset keeps setting fresh all-time highs.
Statistician and cryptoanalyst willy woo earlier suggested that it seemed as though Bitcoin (BTC) is in a “supercycle,” rather than just a bull cycle. Kraken growth lead, Dan Held stated when Bitcoin climbed past $20k that ‘Bitcoin is in a bull cycle like no other’.
BTC/USD Daily Chart
Bitcoin presently trades at $52,400.
Here Is What Analysts Deduced
While discussing the new price highs, some analysts noted that macro factors could combine to create an adoption chain reaction that would further push Bitcoin more into uncharted territory.
Dan Ives, managing director of Wedbush Securities, believes that BTC is on the cusp of a much larger adoption story. The Bitcoin adoption narrative expanded in 2020 after large institutions and corporations tapped in to gain exposure. This trend seems to be growing after Tesla confirmed its $1.5 billion Bitcoin buy-in.
Elliptic co-founder Tom Robinson stated that several financial institutions in the United States “are seriously considering launching some type of cryptocurrency service,” adding that his firm saw a massive surge in Bitcoin-related inquiries from global banks.
Business intelligence firm, MicroStrategy stated recently that it would be selling $900 million in convertible senior notes due in 2027 in a private offering to qualified institutional buyers to acquire more Bitcoin. The business intelligence firm earlier revealed its plan of buying $600 million in Bitcoin.
Bitcoin 60-day Volatility. Courtesy: Woobull Charts
Kraken growth lead Dan Held believes Bitcoin is passing through a ‘supercycle’. In a late December Twitter thread, the analyst stated that ‘This time is different: COVID, Gold 2.0 narrative, institutional herd, and ease of use have set a new stage’.
He continued ‘Never before has Bitcoin had such strong fundamentals against a macro backdrop that highlights exactly why Bitcoin is needed, the narrative is singular, and the ability for global value to flow into Bitcoin has never been easier.’
The analyst believes Bitcoin’s “Gold 2.0” narrative is the only narrative that is driving the crypto space forward as it is the singular focal point that will continue to accrue attention and purchasing demand.
He also enunciated the ease of use as positivity for Bitcoin. He stated:
In the 2013 and 2017 Bitcoin bull runs, it was relatively hard to buy Bitcoin. Often you had to send a wire and understand how an order book worked. Now you can buy Bitcoin with PayPal, or your traditional brokerage like Robinhood.
This present bull cycle when compared to that of 2017 indicated that BTC price swings appear to have ebbed significantly. Bitcoin’s recent 60-day volatility drastically reduced than that of December 2017 when it reached its prior all-time highs of near $20,000.
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