Bitcoin continues to update historical highs, but experts are sure that this is far from the limit.
1. Media attention
Strengthening bitcoin to $ 50,000 not only brought profit to investors, but also ensured it hit all the major media outlets. As a result, there are many more people who want to invest in bitcoin. Cryptanalyst Mikael van de Poppe ironically presented this situation on Twitter:
– Michaël van de Poppe (@CryptoMichNL) February 17, 2021
Along with the growth of quotations, the high interest of retail investors will stimulate active purchases of bitcoin and affect its value in the near future, believes Artem Deev, head of the analytical department at AMarkets. He warned that digital coin investments remain high-risk:
“Acquiring an asset in the hope of its further growth is a very dangerous path, since the value of bitcoin can continue to rise or fall several times.”
2. Protection against inflation
According to Deev, against the background of the crisis, bitcoin became a protective tool due to low interest rates, which led to a drop in the profitability of exchange instruments. Bitcoin not only protected its holders from risk, but also brought profitability tens of times higher than that of gold, which has risen in price by 30% in 2020.
His words are corroborated by a graph posted on Twitter by Holger Zschaepitz, senior editor of the economics and finance department of the German newspaper Die Welt. He argues that investors are increasingly turning to Bitcoin for hedging instead of gold.
– Holger Zschaepitz (@Schuldensuehner) February 17, 2021
The Motley Fool decided to use Bitcoin as a hedging tool to protect against inflation. The company’s analysts claim that in the next 10 years, the volatility of the main digital coin will decrease and allow it to become a full-fledged payment tool.
3. Movement in a parabola
The historical behavior of bitcoin quotes indicates a parabolic cyclicality, analyst and trader Peter Brandt noted, demonstrating this in a chart that he posted on Twitter. On it, the predicted value of bitcoin is over $ 200,000.
Big picture $ BTC
Bitcoin is undergoing its third parabolic advance in the past decade. A parabolic advance on an arithmetic scale is extremely rare – three on a log scale is historic pic.twitter.com/fyyM5Ws6N5
– Peter Brandt (@PeterLBrandt) February 16, 2021
Based on this, 2021 can really become a year of parabolic growth, repeating the fate of 2013 and 2017, but it is better not to rush events as a guideline in price to rely on the psychological mark of $ 100,000, says Sergey Zhdanov, CEO of EXMO. He added:
“This mark, long before bitcoin reached $ 20,000 or $ 50,000, appeared in the media as a fair price for the first cryptocurrency, and in many respects the community is oriented towards achieving it.”