2021-7-23 16:11 |
Several analysts have already predicted that institutional investors pouring money into Bitcoin may be the push the market needs to recover from the current slump.
Notably, the last surge Bitcoin had before it plunged and lost over 50% of its value has been said to be largely owing to interest from institutional investors, by several observers. Currently, cryptocurrency analyst, Eric Weiss, has speculated that when the price of Bitcoin gets to $100,000, institutional investors will go all out to adopt the asset, thereby driving the price to $300,000.
BTCUSD Chart By TradingViewWeiss, the founder, and chief investment officer of Blockchain Investment Group (BIG), is not alone in his optimism for the future growth of Bitcoin. While there have been predictions of further losses, most cryptocurrency analysts have speculated that it is inevitable that the price of Bitcoin will reach new highs before the year runs out. For several of them, including “PlanB”, creator of the stock to flow model for Bitcoin, the worst-case scenario price of Bitcoin by the end of the year should be about $100,000.
PlanB is even more hopeful, pegging his prediction at $135,000 and his best-case scenario prediction at $288,000. As Weiss’ $300,000 prediction is not a far cry from PlanB’s $288,000, the prediction may have some merit to it.
Furthermore, several on-chain metrics revealed by data being monitored by analysts may be pointing to price surges happening soon. Blockchain analytics firm, Glassnode in their recent weekly newsletter, The Week On-chain, has noted several of these metrics.
The publication pointed out that data from activity on the Bitcoin network may be a prelude to new growth as activities have reduced on the spots and derivatives markets. They also highlight that the hashrate of the network was increasing while the accumulation of Bitcoin by miners was also increasing compared to recent past weeks.
Not only that, but Glassnode also points out that exchange reserves of Bitcoin have been greatly reduced in recent times. In a reversal of the trend of net inflow of Bitcoin to exchanges that were predominant in May, Bitcoin is being withdrawn from exchanges at a rate of about 2,000 Bitcoins per day. They attribute this to changing market sentiment as transactions on the network were reversing from being speculative to being more purposeful.
Crypto analyst, Will Clemente, has also chimed in saying participants should “hang in there” as the market would “pop soon”, alluding to the expected price surge he anticipates the market to experience soon.
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