Bitcoin (BTC) Has a Good Chance of Rising Above $100K by the End of the Year

Bitcoin (BTC) Has a Good Chance of Rising Above $100K by the End of the Year

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The market is recovering after negative news from China. Since now China will not influence cryptocurrency quotes, and fundamental factors support the bitcoin rally, experts say.

According to analysts, China has left the cryptocurrency area and will no longer have an impact on the market. The bans have done the trick, and the miners left China earlier. The largest mining equipment manufacturer Bitmain moves production abroad and stops selling in China. Now, retail Chinese investors are getting out of cryptocurrencies. Crypto exchanges stop serving Chinese citizens. For example, Huobi Global will shut down all active Chinese accounts by the end of the year.

As for the whales, no bans can prevent them from moving funds safely using the power of Decentralized Finance (DeFi). Chinese “retail” is a significant part of the cryptocurrency market, but not a determining one. And negative news from China is offset by positive news from the United States.

SEC Chairman Gary Gensler softened his rhetoric after Senate hearings and sharp criticism from congressmen and said that the SEC will support a “narrow class of bitcoin ETFs” that will invest in futures rather than directly into cryptocurrencies.

At the same time, Fed Chairman Jerome Powell said at a hearing in the House Financial Services Committee that the United States does not intend to ban cryptocurrencies. The official clarified that it is necessary to tighten the regulation of stablecoins, which, in his opinion, are similar to bank deposits and monetary funds.

Another positive news from America is the announcement that the Visa payment system has deployed a prototype of its Universal Payment Channel (UPC) on the Ethereum Ropsten testnet. UPC will serve as an adapter connecting blockchains. Visa plans to create a blockchain network to convert various digital assets, including cryptocurrencies, stablecoins, and central bank digital currencies (CBDC). At the end of the year, Visa also will open an API (application programming interface) for banking systems, through which banks will be able to buy cryptocurrencies.

The flow of positive news made it easy for bitcoin to rebound from the $41K support level and rise nearly 15%. Analysts believe that the growth potential of the first cryptocurrency has not been exhausted, and it is able to renew its ATH and even grow to $100K and higher by the end of the year. This forecast is based on the concept of S2F (Stock-to-Flow), which applies successfully to commodities with limited supply. Analysts also predict that at the $100K level, whales will take profits, so BTC will probably correct within 30%.