Bitcoin is on the way up, at least value-wise. After spending months struggling to recover from the aftermath of a mid-November collapse that took the price of the world’s most prominent crypto asset to below $4,000, the industry has started to see sustained growth and; therefore, light at the end of the tunnel.
At the moment of writing this piece, Bitcoin’s price was steadily climbing, checking in at $6,583.79 according to CoinMarketCap, up 4.72% in the last 24 hours. On Thursday, May 9th, it finally surpassed the $6,000 threshold, which is where it was at the time of the ill-fated collapse of November 2018.
And, as the analysts at Canaccord Genuity observe, there is further room for growth. In fact, the specialists see Bitcoin price returning to the $20,000 range in 2021, which would be an all-time high, even surpassing what it was worth in December 2017 – January 2018.
A Matter of Two Years
Michael Graham (analyst) and his associates Alexander Frankiewicz and Matthew Volpe sent a note to Canaccord’s customers, in which they forecasted that BTC was going to return to the $20K range within the next two years.
“Now four months into 2019, we note for the third time the striking similarity in bitcoin’s price action between 2011-2015 and 2015-2019. While this simple pattern recognition has little fundamental basis, we note that bitcoin does operate on a four-year cycle of sorts, as the halving of bitcoin’s mining reward occurs approximately every four years,” they observed.
They further added that “Bitcoin has started to form the spring 2019 bottom we began mentioning last year, although a close look at the chart suggests the recovery may be slightly ahead of itself. Looking ahead, if bitcoin were to continue following the same trend, the implication is a slow climb back toward its all-time high of ~$20,000, theoretically reaching that level in March 2021.”
A Little Bit More about Canaccord Genuity
Canaccord Genuity is an independent, full-service financial services company, with operations in global capital markets and investor relations. It is an international investment banking that focuses in wealth management and brokerage. It is the biggest independent investment dealer in Canada.
The specialists in the crypto markets also observed further movement in the industry, stating that about “7 million bitcoins have been shaken out of ‘Cold’ (not active for at least six months) status and have begun trading hands again.” They predict that BTC price will rise with the next halving of the block reward, which is expected to come next year.
Also, more interest from Wall Street in cryptocurrencies will help soar the price. “Perhaps most important is Fidelity’s continued push into the space. After the asset management giant launched Fidelity Digital Assets last October and a custody service in March, numerous reports suggest the launch of an institutional digital assets trading business within the next few weeks. Fidelity also released a survey of 411 US institutional investors which found that 40% are open to owning digital assets within the next five years. Another factor may be Grayscale’s ‘Drop Gold’ advertising campaign, which hit airwaves recently and targets digitally native investor base that may prefer bitcoin to gold as a non-government store of value investment. Yet another could be several corporate crypto initiatives from the likes of Facebook, Nike, and others gaining attention in the media,” said the note.
“In any event, bitcoin is so far one of the best-performing assets of 2019,” they concluded.
By Andres Chavez