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Cryptocurrency investors have been on a rollercoaster ride since the start of the year. Bitcoin has rallied and fallen just as quickly. This is not surprising, as such price movements are characteristic of fast-growing assets. Given recent market developments, bitcoin may continue its bullish momentum from current positions and make new highs by the end of this year.
BTC/USD
Why might this happen? One factor is inflationary pressures. Almost all central banks in developed countries are printing hard to support their economies. Even if the biggest one in the US starts to phase out the stimulus programme little by little, the US government will still approve a big trillion dollar spending package. Big money will still come into the market. Rising prices and assets always have a positive effect on cryptocurrencies and push up their price.
In the near future confidence in fiat currencies may weaken, because in the current situation the holders of fiat money are totally dependent on the states that printed the money. Such currencies are only backed by the promise of those countries that nothing bad will happen. In a situation where inflation is rising, the owners of money are losing assets on a daily basis. They will try to keep their money in an instrument which is decentralised and not much affected. Bitcoin is not bad for this.
Another factor in the rise in cryptocurrency value could be what happened in Afghanistan. It is difficult to predict what will happen to that country and what geopolitical transformations will happen in the future. People will try to save their money, and the easiest way to do that is with cryptocurrencies. A flash drive with a wallet takes up almost no space in your pocket.
It’s safe to say now that the trajectory of bitcoin over time has been very similar for the past few years. If a bull run happens in the fall, bitcoin could very well renew its highs and head towards the $100,000 per BTC mark. Technically, a bullish trend pattern is almost in place.
03.30 Australia’s trade balance for July
14.30 US initial jobless claims
16.00 US Factory orders for July
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