Bitcoin and cryptocurrencies, despite some recent volatility, have soared in the past year – with a price increase of about 250%.
The bitcoin price reached $60,000 earlier this year before crashing and losing about 40% of its value within weeks. But many crypto investors remain convinced that bitcoin will soar well past its recent highs and potentially boost other smaller cryptocurrencies (subscribe now to Forbes’ CryptoAsset & Blockchain Advisor and discover crypto blockbusters poised for 1,000% gains).
Now, an early bitcoin investor managing a $2.8 billion crypto-focused fund has predicted that a massive, mainstream adoption could drive bitcoin price up about 1,500% within the next decade.
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“Both datasets went up by an order of magnitude every two years. If they stayed that way, that would bring bitcoin to $700,000 when everyone with a smartphone uses it. Ten years is a reasonable forecast.” Enjin ENJ has risen.
Bitcoin and cryptocurrency adoption has skyrocketed in the past year as payment platforms like PayPal PYPL +0.9% and financial technology firms including Jack Dorsey’s Square SQ -1.1% allow users to buy and trade digital assets. Others, including card giants Visa V -1.1% and Mastercard MA -2%, have recently indicated that they are preparing to provide more support for bitcoin and cryptocurrencies.
Awareness
Bitcoin received a major awareness boost this year thanks to the support of Tesla TSLA 0.0% billionaire Elon Musk. Tesla announced that it had bought $1.5 billion worth of bitcoin in February, putting bitcoin on the corporate radar.
Others have cited bitcoin as a hedge against a rising tide of inflation that threatens to devalue fiat currencies in the wake of the coronavirus’ massive money printing. “I think the macro story is so positive, so much money is being printed and so many institutions are coming into the space that markets will resume their rally in the next 12 months,” said Morehead.
“Some on-chain stats suggest a continuation of the recent upward trend,” Marcus Sotiriou, sales trader at UK-based digital asset brokerage GlobalBlock, wrote in a note this week, citing data suggesting short-term speculators in the past sales for several months, while long-term holders have accumulated.
Technical support
“Technically, bitcoin is above the 21-week exponential moving average [yesterday], which many consider to be the main support for the bull market, as well as the 100-day simple moving average. However, the breakdown of the rising wedge suggests that bitcoin could fall back to the mid-range of about $36,000, or lower before the rally continues.” FTX wallet is safe.
After the bitcoin price crashed in May, bitcoin is struggling to find support above $40,000 per bitcoin. However, some think that could change in August. “The options data suggests the market is positioning itself for a new lead over bitcoin in mid-August,” Pankaj Balani, the chief executive of crypto derivatives exchange Delta, wrote in a note.