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The price movements of the first cryptocurrency are beginning to resemble those of 3 years ago. Bitcoin is growing faster and faster. But there are also significant differences. The main question is who is buying BTC today, pushing the price up.
BTC
3 years ago, at these levels, Bitcoin was bought by the public, who for the most part did not understand anything at all about cryptocurrencies. Then, after a powerful pullback, people lost a lot of money. And many people left the market forever.
Today, the situation is completely different. Bitcoin is being bought by banks, investment and pension funds and even public companies. They don’t buy for speculation, but to preserve the value of money that is rapidly depreciating.
More and more bankers and experts are adding oils to the fire, showing that everyone is expecting a yield of 10% per annum, not standard for the stock market. The rates are much higher here. The projected annual return is on average 100-1000%.
For example, the Executive Director of Citibank says that Bitcoin will be traded at $318,000 by the end of 2021. This is not a bank analyst or any clerk in the planning department, but Tom Fitzpatrick, Citibank Group’s global product manager with the status of executive director.
He expects the price of bitcoin to peak at $318,000 by the end of 2021. The forecast may sound incredible, but Fitzpatrick claims that this spike will be the weakest rally for a digital asset compared to other assets such as gold.
And while Fitzpatrick predicts that Bitcoin will be subject to even greater regulatory restrictions in the future. However, unlike other digital currencies such as the digital currencies of the Central Bank (CBDC), bitcoin cannot be confiscated, making it a safer asset.
When to wait for $20,000 for 1 BTC?
It is not clear why everyone is so closely following the previous maximum reached 3 years ago. Does anyone believe that this achievement will be followed by a powerful correction again, as it is a strong level of resistance?
It is more likely that the opposite will happen with precision. A break-down in the level of $20,000 for 1 BTC will cause a new surge in purchases by the funds. And the nearest stop is seen at $22,000, which is about 10% above this level.
What awaits us today?
01.30 Minutes of the meeting of the Reserve Bank of Australia
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