Bitcoin saw a fresh new record on Tuesday night, reaching $35,106 per coin. As prices were fluctuating wildly, investors had hard times to figure out the market direction. However, with a 12% Bitcoin rise on Tuesday, it was easy to predict the market trend, which is now going up.
Matt Kaye, a managing partner at Santa Monica-based Blockhead Capital, says the increasing number of spot buyers entering this year could change the US fiscal policy for the next ten years.
Since January, Bitcoin has climbed more than 20% after a 300% upswing last year triggered by significant institutional investment.
Recently, the investment banking giant JPMorgan said that Bitcoin would be attracting more interest with time and replace gold with a steady price of $146,000.
Another famous market analyst, Nikolaos Panigirtzoglou, suggests that based on the projected price of $146,000, Bitcoin’s market capitalization should be augmented by 4.6 times. Only under this scenario could the digital asset match the total private sector investment in gold through exchange-traded funds or bars and coins. If this happens, it would be a big leap for bitcoin – becoming an alternative currency.
Investors state that Bitcoin’s price volatility needs to go down to allow larger investments for institutions and that convergence between gold and bitcoin will happen gradually. Investors need more confidence.
While Bitcoin rose to 160% in the last quarter, mainly due to institutional cash flow impulse, the crypto community watched the price climb closely and diligently.
JPMorgan is convinced that there’s room for speculations and that a tangible upturn between $50,000-$100,000 may prove unsustainable. Unlike 2017, this year’s bitcoin surge is different. In 2017, the virtual coin neared $20,000 for the first time. What distinguishes 2017 and 2020 is the institutional investment into bitcoin.
Last year, Anthony Pompliano at Morgan Greek Digital analyzed that Bitcoin’s market cap would breach gold’s in 2029. He had theorized that before bitcoin’s big rally.