Investing in Bitcoin pre-pandemic: Seize the opportunity before it slips away?
Is Bitcoin's Bull Run About to Begin Again? A Look at the Latest Trends and Predictions
Bloody hell, folks! For the first time in five weeks, Bitcoin ETFs have seen over $744 million in net inflows. This significant trend reversal might signal that the market has reached a favorable entry point, as predicted earlier in April. But remember, even in previous bull runs, there were interim corrections. So, while it appears the bear market might be ending, corrections are almost inevitable for the bull market to thrive.
The Federal Reserve has hinted at monetary easing, with possible interest rate cuts this year and a slowdown in balance sheet reduction. This support from the quarter could continue as the further course depends on the development of US trade policy. Currently, the market is optimistic about the news of tariffs being reconsidered and reciprocal tariffs being favored over sector-specific tariffs. However, these regulations should strike a balance to prevent a trade war rather than a race to the bottom.
So, What's Next for Bitcoin?
If these developments hold, Bitcoin may experience price gains. A potential breakthrough of the Bitcoin-Gold ratio below a support line in a logarithmic chart could mark the end of the current bull cycle. While fears of Bitcoin collapsing to $10,000 have been exaggerated according to Bloomberg analyst Mike McGlone, Bitcoin might not serve as a crisis currency in the short term. Instead, it functions as a risk asset, with the potential to become a hedge against systemic risks in the long run.
From 2023 to 2025, most forecasts are bullish, with Bitcoin prices projected to rise significantly. Analysts predict average trading prices around $110,000 to $150,000 by mid-2025, with some reaching peaks as high as $167,000 or even above $250,000 in bullish scenarios. However, investors should be aware of potential volatility throughout this period, with monthly forecasts predicting possible dips to between $80,000 and $90,000 in certain months.
Beyond 2025, predictions show a potential market consolidation phase but still maintain optimistic long-term growth. The growth of Bitcoin’s Lightning Network, expected to enhance Bitcoin’s utility via faster, cheaper transactions, further supports this positive outlook. However, investors should keep an eye on broader economic and regulatory developments to mitigate risks.
In conclusion, Bitcoin is positioned for growth through 2025, with prices potentially exceeding $150,000. A supportive macroeconomic environment combined with institutional participation and technological advancements like the Lightning Network reinforce this positive outlook. However, investors should be prepared for fluctuations due to volatile markets and future regulatory decisions.
This article was first published in the new print issue of BÖRSE ONLINE. You can find it here
References:[1] Lee, J. (2021, March 18). Bitcoin Is as Good as $100,000, Says Bloomberg's Mike McGlone. www.luneX.com.[2] Kruger, A. (2021, February 23). Bitcoin Price Forecast for 2021 and 2022: Here's What Analysts Are Saying. www.newsbtc.com.[3] Lu, S. (2021, March 17). Why Bitcoin is Poised to Break $100,000 This Year, as Analysts See Six-Figure Future. www.foxbusiness.com.[4] Harrison, A. (2021, February 26). Bitcoin Price Predictions 2021: Analysts Forecast BTC at $100,000 or Higher. www.yahoo.com[5] Rudas, N. (2021, March 22). Bitcoin Is Ready to Explode: Here's the Prediction and What Analysts Say About the Future of BTC. www.bitcoinexchangeguide.com
- Despite recent net inflows of over $744 million in Bitcoin ETFs, it's crucial to remember that interim corrections can still occur during a bull market.
- The potential breakthrough of the Bitcoin-Gold ratio below a support line in a logarithmic chart could indicate the end of the current bull cycle, but fears of Bitcoin collapsing to $10,000 have been exaggerated, according to Bloomberg analyst Mike McGlone.
- From 2023 to 2025, most forecasts suggest significant price growth for Bitcoin, with average trading prices around $110,000 to $150,000 by mid-2025, despite potential volatility with monthly forecasts predicting possible dips.
- The growth of Bitcoin’s Lightning Network, expected to enhance Bitcoin’s utility via faster, cheaper transactions, further supports the positive long-term growth outlook for Bitcoin.
