Following news that both BlackRock and Fidelity have entered the digital currency market, many institutional analysts have predicted that within the next six months, bitcoin will reach a price of about $35,000 per unit, while Ethereum will jump into the $2,000 range.
How Much Has Bitcoin Lost?
On paper, this doesn’t look all that spectacular. After all, bitcoin – just 11 months ago – was trading at a new all-time high of approximately $68,000 per unit, so $35,000 would be only about half of that, maybe a bit more. No big deal, right?
Well, not when one considers that the crypto space has been enduring some of its most bearish conditions ever. The world’s number one digital currency by market cap is presently trading for about $19,000, the lowest it’s been in years, and Ethereum has fallen into the $1,300 range. This is not good, especially considering that many analysts believed after the recent Merge – in which Ethereum switched from PoW to PoS – that the price of the asset would shoot through the roof.
This hasn’t happened, so the idea that the world’s two leading digital currencies could add so much to their prices in the next few months is something that many hardcore traders and investors are finding reasons to get excited about.
Anatoly Crachilov – chief executive of Nickel Digital in London – explained in a recent interview:
Predicting future price movements in the cryptocurrency market is always a challenging endeavor. However, the survey clearly points to constructive price recovery expectations by institutional investors. It is well-grounded, long-term optimism. Investors acknowledge that the ongoing crypto winter still has some way to run but there is also a recognition that, if history is any guide, once the winter ends these high-beta markets will stage strong recovery.
Right now, it’s probably safe to say that traders would appreciate a rally – any rally – in which the bitcoin and Ethereum prices shoot up somewhat. Both assets have been trading in the doldrums for what feels like forever, and trillions of dollars in wealth have disappeared over the course of the last few months alone. The digital currency space was valued at roughly $3 trillion at the beginning of the year, but now the industry has fallen to less than $1 trillion. It’s a sad and ugly sight.
Joe DiPasquale – chief executive of bitcoin hedge fund Bit Bull Capital – commented in a statement:
The $18,000 level has continued to provide decent support, and if bitcoin doesn’t break down in the coming days, we could see upward movement in October with $24,000 and $26,000 being initial levels to watch.
Only Slight Change in the Books
The last four months have been particularly hard for BTC, with the asset dipping as low as $17,500 at one stage.
Thankfully, the currency is no longer at that position, though recovery has still been minimal.
