Bitcoin today hit $39,000 per coin for the first time a Brutal digital asset destruction May 2022 brought with it a long and painful bear market.
The virtual coin has made quite a comeback since then, trading at less than $17,000 per coin in early January. It is now up 128 percent.
Does this mean we are seeing the beginning of a bull run? Some experts say that it is only from here.
A lot has happened in the crypto space since the blockchain project Terra. He fell In the past year, there have been many losses to every virtual coin and token – especially the mega exchange FTX.
Along with historically high interest rates, they are being chased by a toxic mix of industry failures and it looks like crypto will never make it back.
But institutions including Wall Street giant BlackRock have shown great interest in the crypto sphere: The firm and other big names in finance have filed with the Securities and Exchange Commission for a spot Bitcoin exchange-traded fund (ETF).
And the Federal Reserve can only do so through fiscal tightening, which in the past year has caused investors to avoid “risky” assets like stocks and crypto.
In a report released on Friday, crypto asset manager Grayscale Research Group he said. As long as the central bank completes its tightening and the US economy can avoid a ‘hard landing' (recession), it will see a “gradual improvement in crypto fundamentals”.
Grayscale mentions halving next year. “Reviews should be positiveHe said.
And James Butterfill, head of research at digital asset manager CoinShares, said Decrypt Investors want to branch out – and that could be good for Bitcoin.
“The rising correlation between bonds and equities – now at a high of 42%, excluding the COVID-19 period – is driving a search for effective diversification among investors,” he said. compared to other asset classes.
When many investors realize this, property prices will be higher in the new year, he said.
Meanwhile, said Greg Magadini, director of results at Amberdata. Decrypt According to the data, “options traders are very bullish on BTC spot prices and expect prices to rise relatively soon.”
If investors finally find a Bitcoin ETF that the SEC has repeatedly rejected for the better part of a decade, it could flood the capital market, say CryptoQuant analysts. He predicted.
Although the future looks bright now, there are other things to consider.
“There are also headwinds facing the price of bitcoin,” said Sam Callahan from Swan Bitcoin. “These include a recession and the banning of spot bitcoin ETFs,” he continued, adding that a denial from the SEC could lead to “market panic.”
Edited by Ryan Ozawa.
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