The February record of bitcoin at levels above $ 58,000 is linked by analysts to the interest in cryptocurrency on the part of large investors. According to the forecast of The Motley Fool, in the long term, the main cryptocurrency will rise in price 10 times from current levels.
The rally above $ 50,000 came shortly after it became known that the Chicago Board Options Exchange (CBOE) had applied for the listing of an exchange-traded fund (ETF) based on bitcoin investment company VanEck.
Earlier, MicroStrategy announced an investment of another $ 15 million in bitcoin. In addition, the media reported that Goldman Sachs Group Inc will reopen its cryptocurrency trading division. According to sources, starting next week, the bank will offer clients transactions in bitcoin futures and non-deliverable forwards. The cryptocurrency team will become part of the Global Markets division.
Goldman Sachs is also exploring the potential of an exchange-traded fund (ETF) based on bitcoin and has issued a request for information to enter the digital asset custody business, the source said.
It cannot be ruled out that in the near future, large players will begin to leave the crypto market and get rid of the purchased bitcoins, which will affect the quotes. According to cryptanalyst Willie Wu, the recent correction of bitcoin began due to the fact that traders mistakenly linked its movements from address to address with the desire of large holders to get rid of the asset en masse. This killed the bullish trend that lasted until the end of February, Wu noted.
Large companies, investment funds and billionaires are showing interest in cryptocurrency not only because of profits, says Artem Deev, head of the analytical department at AMarkets. According to him, they are attracted by the status of a protective asset that bitcoin acquired during the pandemic. The fall in stock indices forced investors to invest in gold and bitcoin. Deev says:
“Now the situation is extremely unstable – investors, hoping for the recovery of the global economy, are shifting to securities, but, on the other hand, the threat of exchange bubbles is brewing. Some investors may start to withdraw from cryptocurrencies, fixing profits, which will lead to a sharp decline in digital assets. “
Some investors can take advantage of the situation to buy cryptocurrencies when the price for them drops as much as possible, the analyst predicts. Over the next couple of years, bitcoin, as a protective asset, may double in price, added Deev.
According to Artem Deev, now the market is waiting for who will be the first to decide to exit the cryptocurrency. After that, he expects a boom sale and a collapse in the value of bitcoin. There is another scenario, the expert notes, if a correction begins in the financial markets. Then Bitcoin will rise in value.
Michael Ross-Johnson, CEO of the cryptocurrency p2p platform Chatex, notes that “hype” companies have invested in bitcoin, which are mainly supported by innovators. More conservative organizations are not yet ready to enter the cryptocurrency market. Moreover, according to Ross-Johnson, conservative investors are not interested in the value of bitcoin, since they do not consider it as an asset. The Chatex CEO named the most likely scenario in which new players will not invest in bitcoin, and cryptocurrency holders will gradually sell coins and fix profits.