The price of Bitcoin (BTC) achieved a new all-time high above $42,000 on Jan.8. Bitcoin corrected sharply after rising to $42,000 but has since recovered to trade above $40,000. Bitcoin hard forks, Bitcoin Cash (BCH), and Bitcoin SV (BSV) are currently on a leg higher.
Bitcoin Cash surged above the technical resistance at $490 to reach intraday highs of $654, gaining 39.33% weekly. Bitcoin SV rose in a quick spurt to reach fresh highs of $325 today, coming at whiskers near its January 14, 2020, all-time high of $441.
Bitcoin SV (BSV) is originally a fork of Bitcoin Cash, which itself is a fork from Bitcoin. Attention to the Bitcoin SV token has been largely limited in favor of well-known tokens like Ethereum and XRP.
Mini ‘Altseason’ appears to be here already, with 17.71% and 14.58% daily gains that EOS and Tron posted respectively. Dogecoin is also up 10% on the daily, a continuation of the gains when it jumped 70% last Monday following its promotion by Tesla CEO and the world’s richest man, Elon Musk.
Bitcoin Cash (BCH) Daily Chart
Bitcoin Cash (BCH) presently trades at $619 up by 42.03% on the day while Bitcoin SV (BSV) trades at $289 up by 58% on the day.
Nexo Co-founder and Managing Partner Antoni Trenchev said recently that Bitcoin Cash fundamentals will buoy its price into 2021. Stating:
“BCH has a string of aces up its sleeve: a well-educated community, loyal investors, retail distribution, and actual real-life use cases. We believe that these benefits could change BCH from an underdog to a medal-winner in 2021 if only Bitcoin Cash gets its act together,”
Bitcoin Cash will be valued at $800 and then $10,000 in 2027 with a final price target of $100,000 by 2030.
BSV/USD Daily Chart
Roger Ver believes “BCH is far more useful than BTC for everything and It does have far more potential upside as well, the more useful something is, the more people will use it,” he further stated predicting a surge in Bitcoin Cash holders and users in 2021.
Ver stated that “2021 will be the best year for BCH yet, due to the Tor-integrated, decentralized privacy protocol that obscures real spending Cash Fusion which enables super-strong privacy for Bitcoin Cash.” Second, BCH now has fully functioning crowdfunding through Flipstarter, a public DeFi product called AnyHedge, new tokens issued by Simple Ledger Protocol (SLP), instant tipping on every platform via Bitcoin.com wallet, as well as acceptance at more than 100,000 websites via crypto payments provider Bitpay and almost 100,000 physical merchants via crypto payments, network GoCrypto.
Bitcoin’s “Very Extreme Peak”
Overall, market sentiment towards Bitcoin remains positive despite gains over the last three months. Eric Wall, CIO at Arcane Research, said on Twitter that Bitcoin could see a “very extreme peak” this time around. This would mean that even if Bitcoin could be overheated from a technical perspective in the near term, BTC still has room for additional growth.
At a current price of around $40,000, Bitcoin’s market capitalization is estimated at over $740 billion. With a gold valuation of $9 trillion, BTC’s market cap would be around 8.2% of the value of gold.
Bitcoin’s bullish predictions, like that of the Winklevoss Twins’, suggest that Bitcoin may overtake gold in the long run. Based on this estimate, some analysts say that Bitcoin reaching 10-20% of gold’s market capitalization is realistic.
Wall noted that Bitcoin is likely to peak when there is supposedly a lot of “froth” in the market. If there is an unnaturally high level of retail hype around Bitcoin, the likelihood of a temporary Bitcoin peak will increase. However, Wall said that given the unprecedented level of institutional interest in Bitcoin, the next peak could be much higher than many think.
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