Expect Bitcoin ‘to fly’ in Q4!
With the Bitcoin price recovery now in play, I believe we’ll see an imminent bull run which will result in a significant bounce this summer.
The world’s largest cryptocurrency finally brought an end to its longest weekly losing streak on record. Indeed, Bitcoin ended last week at $29,900, which was $450 higher than the previous Sunday, after grappling to find support over the weekend.
As I was quoted by Forbes and Investing.com, amongst other media, I think this is a great reason for BTC investors to be cheerful. The price recovery is underway, likely to the annoyance of crypto cynics.
As such, I think we’ll soon see a bull run and a considerable rally over summer for the powerhouse cryptocurrency.
As it stands, Bitcoin is highly linked to leading global stock markets, like Wall Street’s S&P500, and I think the recent market downturn is close to the bottom and a rally is looming.
A good indication the bottom is near is that according to tracking services, ‘insiders’ are on a buying spree, making the most of reasonable valuations to bolster stakes in quality companies to generate and increase long-term wealth.
Consequently, Bitcoin will benefit from a stock market rally as investors shift back towards riskier assets.
Another fundamental reason for a robust recovery for Bitcoin is that investors are using it as a hedge against soaring inflation. The cryptocurrency is viewed as a credible hedge against inflation due to its scarcity, having only a limited supply of 21 million means prices will rise with elevated demand. Also due to its accessibility, it has value as an asset and is accepted by the market; and also its durability, as demand continues to rise for Bitcoin over time.
Furthermore, an increasing number of investors see Bitcoin as a dollar alternative. During the Covid crisis, the U.S. government started to add digital dollars to the economy, weakening its value, yet fuelling Bitcoin’s long-term prospects.
I also believe the Bitcoin rally will be bolstered by the rising number of institutional investors getting into crypto, who bring with them capital, expertise and reputational pull. Not to mention financial watchdogs around the world who are increasingly seeking to establish a regulatory framework for crypto.
Of course, regulation would provide increased protection, and therefore boost the confidence of both retail and institutional investors.