Bitcoin for $ 30,000: will the crypto market show the new records
Bitcoin unexpectedly, but not for long, did overcome the $9000 mark. That immediately provoked a wave of predictions about the upcoming BTC records. But are there any reasons for the growth?
Since the beginning of 2019, the
cryptocurrency market capitalisation has increased by 125% and is now at $270 billion. After a long bear market and a lower threshold of about $ 3,200 for BTC, investors' interest in cryptocurrency has increased significantly. But no one really understands why would that happened. Institutionals and halving
Strangely enough, many analysts once again predict that bitcoin will repeat its records of 2017, when the
exchange rate one coin reached $20,000. According to OKEx operating director Andy Chung, there are all conditions for the prime cryptocurrency to reach its peak before the end of 2019. Among the reasons for that there is the arrival of institutional investors and halving, i.e. the mining reward reduction.
In his turn, a LetKnow HQ Ltd. analyst Vladimir Denisenko says that after the reward division, there is a certain accumulation of positions follows on the market, and within the period of one year a parabolic growth of the prime cryptocurrency takes place.
“Concluding from the available data for the previous periods, we can assume that the halving will positively affect the Bitcoin exchange rate. The deflationary model implies an asset appreciation, ” the expert explains.
However, the outstanding growth is not to be expected, in spite of the last two months showing that Bitcoin can go up quickly. Even the appearance of fundamentally bad news can not hinder such growth.
Nevertheless, according to the crypto expert Vadim Popov, it’s better not to hope for the arrival of institutional investors, and you still need to wait and see the reduction of the mining award.
“The coming of the institutional is an old mantra for luring inexperienced investors. Since it will be almost a year before the halving, this topic will not be played out soon,” claims Popov.
The co-founder of the Hong Kong investment company Kenetic Capital Cihan Chu also believes the legend about the arrival of large investors. By the end of the year, he predicts the bitcoin rate at the $30,000 mark. According to the expert, the main reason is that after the IPO of Uber and Lyft, disappointed investors are looking for other technological stories. At the same time, Chu is waiting not so much for the approval of the long-awaited Bitcoin-ETF, as for the large companies like Fidelity and Samsung starting to use crypto.
Anyway, the most realistic scenario for the Bitcoin takeoff was voiced by Travis Kling, the founder of the cryptocurrency hedge fund Ikigai. He is confident that professional "whales" can push BTC up to $30,000. However, it is not known when they will begin to short their profits, which will necessarily lead to the collapse of the value of the asset.
“Whales manipulate the market absolutely, and it is because of them we saw the growth of Bitcoin in April and May,” claims Vadim Popov.
According to Vladimir Denisenko, “whales” are first of all the exchanges themselves. And they are actively manipulate the price of bitcoin.
“The graph shows how the market maker manipulated the price of the prime cryptocurrency. For 4 hours, the volatility was more than 10%, it is clear that it was organised by a big player, ” the analyst shows an example and immediately adds that it is unlikely that the games of “whales” will lead to new records of the asset.
As for the near future, the founder of the cryptocurrency bank of Galaxy Digital, Mike Novograz, expects bitcoin at as high as $10,000 soon. He explains it with the use of the
blockchain in creation of digital IDs by Microsoft and relies on rumours of Facebook cryptocurrency project.
“Launching their own cryptocurrencies by Facebook, Telegram, JPMorgan, Samsung and other industry giants is only confirmation that the industry is developing, and companies are simply obliged to do it. $ 10,000 for one Bitcoin, are absolutely reachable numbers this year. But such news is only a cover, as the price is controlled by the whales,” says Vladimir Denisenko.
Vadim Popov agrees, because, anyway, this news is not enough for the rapid growth of the crypto market.
“The market is growing not on the news, but on the money pumping. It’s just sometimes easy to simply link the news to the growth,” says the specialist.
Therefore, as long as the cryptocurrency moneybags swing the Bitcoin boat, we will observe growth and attempts to explain the uptrend with different information backgrounds.
It is impossible to predict when such speculations will end, but anyway the $10,000 mark for BTC looks much more realistic than $30,000 because it is unlikely that investors who entered the market at the $20,000 mark will want to repeat their mistakes.
The author: Annabella Lapshina