The fast rise of the leading cryptocurrency has sparked contradictory attitudes from analysts. Some of them believe that the long-awaited bullrun has begun, it will bring BTC to the $50K level. Others believe that right now it is time to sell bitcoins because there is a drop ahead.
The leading cryptocurrency rises at the same time as the gold rises. The turbulence in the global markets has reached a peak, and investors are interested in defensive assets. Now no one needs to prove that bitcoin has become such a defensive asset, along with gold, but not on an equal footing so far. While gold rose to a record high of $1,938, breaking the record in 2011, then BTC grew less noticeably, by 4.7% per day. But in any case, bitcoin is seen as an equal asset in the investment portfolio. More traders are interested in it, and experienced investors state that BTC should be kept in the portfolio.
It is a crypto community that has talked about bitcoin as about digital gold for years. But recently serious experts, for example, on Bloomberg, started talking about this. In particular, they noted that the volatility of BTC has decreased significantly and this is because investors are buying it as a defensive asset. Also, interest in BTC futures is constantly growing.
The current growth of BTC is associated with geopolitical instability, the aggravation of US-China relations, the growing influence of Russia in the world, and the super-soft monetary policy of the US and the EU. In this case, the rise of bitcoin will continue, because the consequences of quantitative easing are just beginning to appear, and stability in world markets is unlikely to be established in the close future. BTC will rise to at least $12K, according to technical analysts.
Simultaneously with the first cryptocurrency, the second cryptocurrency is also rising, and even at a faster pace. This is connected with the rise of miners’ income in recent months. For example, in July, miners’ income grew by 60% compared to the previous month, according to the Sparkpool mining pool. But it is Ethereum 2.0 ahead with the change of consensus from Proof-of-Work to Proof-of-Stake. Under these conditions, investing in ETH as in digital silver is now risky. But the rise of BTC by 20-40% is possible.
On the other hand, skeptics are confident that there will be no bitcoin rally. And now is the time to take profits and sell the asset. Many investors do this. Market analytics service for bitcoin and digital asset investors Glassnode tweeted that after the BTC price spike, there is the largest flow of bitcoins to exchanges in the past three months.
#Bitcoin inflows into centralized exchanges have started to significantly increase.
We are currently seeing the largest hourly net flow spike (24h MA) in over three months.
— glassnode (@glassnode) July 27, 2020
But most of the statements are in favor of the further rise of BTC. There are fundamental factors for this. For example, on July 23, US national banks are allowed to store digital assets, this will attract institutional investors for sure.