Stock-to-flow model creator PlanB has calculated Bitcoin could reach $92K by the end of April…but will it actually get there? The cryptocurrency markets experienced a monumental green wave this week. Bitcoin and Ether calmly made new all-time highs on the back of Coinbase’s direct listing and the Berlin hard fork. Meanwhile, meme-cryptocurrency Dogecoin blasted off to more than 400% gains, briefly claiming a spot as a top 5 cryptocurrency by market capitalization.
While Bitcoin is off its recent highs lately, the chief executive of one cryptocurrency trading exchange says he expects the digital currency to hit the $1 million mark within the next decade. Jesse Powell, who heads San Francisco–based Kraken, made the remarks in an interview with Bloomberg Thursday morning. “In the near term, people see it surpassing gold as a store of value, so I think a million dollars as a price target within the next 10 years is very reasonable,” he said.
Bitcoin is trading near $66,000 levels in South Korea as “Kimchi Premium” has returned. Kimchi Premium is the spread between bitcoin’s price on South Korean crypto exchanges and Western exchanges. Bitcoin is currently trading at around $66,200 on Bithumb, according to TradingView. That is whopping about 15% or $9,000 higher than bitcoin’s price of around $57,000 on Coinbase. The Kimchi Premium suggests rising demand for bitcoin and ether in South Korea as the cryptocurrency market continues to soar worldwide.
Inflation — or rather, the perceived threat of inflation — has been very kind to bitcoin (BTC) and crypto. Thanks in part to the US Federal Reserve (Fed) committing to ‘unlimited’ quantitative easing and to Congress approving trillion-dollar stimulus packages, bitcoin has climbed from below USD 5,000 to above USD 61,000 in less than a year.
The institutional investors are here, bringing with them billions of dollars and record-high bitcoin (BTC) prices. This is something the market had been expecting for years, but now that it has finally arrived, it potentially brings risks as well as benefits.
The next few years might prove crucial for bitcoin (BTC) that is “here to stay” but is not likely to be used as a means of payment, according to German multinational giant Deutsche Bank. Bitcoin’s market capitalization of more than USD 1trn “makes it too important to ignore,” while large players who buy and sell BTC have “considerable” market-moving power, said the March 2021 report prepared by Deutsche Bank Research. The coin’s price could continue to rise as long as asset managers and companies continue to enter the market.
Bitcoin (BTC) appears set to challenge record highs in the wake of this week’s dovish Federal Reserve meeting. One expert, however, is calling caution, based on his observation of price charts as bitcoin rose from lows near $43,000 seen earlier this month. The chart pattern has taken the shape of what’s known as a rising wedge, a sign of uptrend fatigue.
Bitcoin (BTC) once again showed that it is indirectly correlated to macroeconomic factors that can move the stock market, and, in turn, affect the price of the most popular cryptocurrency that is often touted as an independent asset class. Bitcoin fell around 10% on March 4, from USD 51,680 to USD 46,550 in the early hours of March 5. The price rallied by 38% in a month and 458% in a year however BTC is now down by 17% from its all-time high of USD 58,641reached on February 21.
“If we think about it though, bitcoin wasn’t reacting to the [Federal Reserve] at all. It was reacting to the stock market,” QuantumEconomics.io founder Mati Greenspan said in his latest newsletter.
Bitcoin will eventually be the world’s currency, because “you have to think it’s going to infinity,” Jesse Powell, the CEO of the cryptocurrency exchange Kraken, told Bloomberg on Wednesday. He said that national currencies were “already showing extreme signs of weakness” and that people would soon start measuring the price of things in bitcoin. “The true believers will tell you it’s going all the way to the moon, to Mars, and eventually it’ll be the world’s currency,” Powell said. Kraken, based in San Francisco, is in talks to raise new funding that would double its valuation to over $10 billion, Bloomberg reported in late February.