Bitcoin is celebrating a comeback, bringing the world’s largest cryptocurrency up more than 50 percent from its recent lows. As is so often the case with Bitcoin rallies, this lures sky-high price targets. $ 100,000 is again a topic of conversation in the crypto scene.
Until recently, Bitcoin was still a shame as a result of the abrupt crash from the record high of 64,912 dollars on April 15. The fall of the Bitcoin price towards 30,000 dollars within a few weeks fueled serious fears about the cryptocurrency.
Now the days are over when there was talk of a potential setback to $ 20,000 or even further price drops. It is now back in vogue to talk about a return to the previous price high and expect new records to go beyond this.
Fastest 21-day increase since February
Bitcoin has now gained four weeks in a row and the price is approaching its second monthly increase. The cryptocurrency has seen its fastest 21-day surge since February. That was the last time the price went really steeply to new heights. On Wednesday, Bitcoin was quoted at $ 46,690 towards the evening.
“Things are looking up again,” said Meltem Demirors, chief strategist at the crypto fund provider CoinShares, to the Bloomberg news agency. He positively reinterprets the specter of stricter regulation. Many investors see the new attention from the authorities as positive news and a positive catalyst because it clears up a lot of confusion and uncertainty. “And I think it also shows that the crypto community is no longer an esoteric corner of the financial world,” said Demirors.
Hackers start to return some of the $ 600 million they stole in one of the biggest crypto heists https://t.co/ydmLRfbwPs
– CNBC (@CNBC) August 11, 2021
If the US government’s new tax plans to finance its trillion-dollar infrastructure program were recently seen as a burden on the US crypto industry, the concerns now seem to have vanished. A first draft law with significantly stricter regulations regarding the taxation of digital assets should find a majority, but the measures are not yet set in stone, according to market observers.
And: Even the hackers, who, according to media reports, stole up to 600 million dollars in cryptocurrencies from the DeFi platform Poly Network, have not yet plunged the prices into the abyss.
Ethereum: catching up or competition?
There is no lack of reasons why Bitcoin will at least double the price from the current level. If Bitcoin were to catch up with the recent increases in the second-largest cryptocurrency, ether, in terms of percentage performance, the price would go up to $ 100,000, said Mike McGlone of Bloomberg Intelligence in a television interview. And even up to the old high there is still “a lot of space”.
Ether, which is based on the Ethereum network, has achieved a price performance of 320 percent this year, while Bitcoin has gained 54 percent since the beginning of January. A possible equalization of the two largest crypto currencies Bitcoin and Ether is often suggested because the two “firstborn” Internet currencies are the most widespread and are also most likely to be viewed as candidates for digital reserve currencies.
On the other hand, Bitcoin and Ether are also competitors: In December 2020, Bitcoin was still 73 percent predominant, now only 47 percent, as the website cointelegraph.com writes. Ether has doubled the share of cryptocurrencies traded to 20 percent in the same period, driven in part by the emergence of non-fungible tokens (NFT), which are validated using the network’s distributed ledger technology.
The hash ribbon indicator lights up “blue”
Tom Lee from Fundstrat Global Advisors also sees Bitcoin at $ 100,000 – by the end of the year. The co-founder of the analysis house recommends a simple rule to investors, which, as is often the case with Bitcoin, is based on patterns in the price trend: If Bitcoin exceeds its average price over the last 200 days, then it is time to buy.
The so-called hash ribbon indicator has also caused a stir in the past few days. This is based on the “hash rate”, which crypto fans see as a very safe guideline for the state of Bitcoin. The hash rate measures how many calculations the Bitcoin network does per second. This indicates the extent of Bitcoin mining, which in turn should allow statements about the price development of the cryptocurrency.
The hash ribbon indicator wants to determine in detail whether miners have “capitulated” or whether they have become active again. This is indicated with different colors in a chart.
The increase from 98 million TH / s to 109 million TH / s (1 TH / s is 1,000,000,000,000 hashes per second) in the last days of July and at the beginning of August sparked fantasies. According to the indicator, the miners have ended the “surrender” phase, which is initially visible in the chart with a series of green and then a blue point. In other words, this is a buy signal for Bitcoin. Only: While some swear by the hash ribbon indicator and point out that the patterns have so far always indicated a price increase (for example in autumn 2020 before the very strong rally that lasted until last April), others say that such statements should be made be met with a certain skepticism.
(cash / Bloomberg / AWP)