The unexpected growth of the first cryptocurrency by more than 20% gave rise to optimistic forecasts, despite the fact that BTC is correcting within 10%.
Mike McGlone, Bloomberg’s Intelligence commodity strategist, believes that BTC is more likely to rise to $60K than to fall to the $20K area. According to the expert, from the point of view of technical analysis, bitcoin is ready to repeat its 2019 price pattern. Then, in three months, BTC grew by 250% from $4K to $14K. McGlone notes:
– Shorter-Term Bitcoin Pain Typical for Potential Longer-Term Gain: probing $30,000 is more a matter of supportive maturation within a longer-term pricing uptrend than a signal that Bitcoin is destined for dark days. China’s crackdown [confirms] Bitcoin’s revolutionary value.
The expert believes that the bans on mining and cryptocurrencies in China indicate that the Chinese economy has reached a ceiling in its economic rise. China’s abandonment of crypto assets means defeat in the competition with the United States. When it comes to digitizing money, the US dollar is ahead of all other fiat currencies, because the main stablecoins are backed by USD.
Bitcoin’s rise from $32K- $33K area to almost $40K was driven by the info that Amazon is considering accepting payments in cryptocurrencies starting with BTC. This information was published by the London business newspaper City A. M. citing an unnamed source.
The newspaper also reported that following bitcoin, Amazon will start accepting Ethereum (ETH), Cardano (ADA), and Bitcoin Cash (BCH). However, there is still no confirmation of this information from Amazon. But on Twitter, there was a message from a well-known member of the crypto community with the nickname CryptoCobain, who claims that it was he who started the rumor about Amazon’s interest in cryptocurrencies.
Now, most analysts believe that bitcoin’s growth was manipulative and that it wouldn’t continue. But a crash to the previous level or below it is also unlikely. There is other positive news in support of bitcoin and cryptocurrencies. In particular, the Stone Ridge Holdings Group filed an application with the SEC to register a bitcoin fund.
Stone Ridge has $10 billion in assets under management. The fund will not invest directly in BTC but in bitcoin-related products. This reduces the Fund’s dependence on bitcoin volatility. Earlier, Stone Ridge announced that it bought BTC in the amount of $100 million “as part of its treasury reserve strategy.”