The first cryptocurrency has appreciated almost 600% in the last 12 months. Bitcoin can transition from a reserve asset to an asset without risk, says Bloomberg.
The expiration of USD 6,000 million in options in the bitcoin derivatives market (BTC) this Friday, March 26, caused uncertainty in the market since the beginning of the week. This uncertainty led to a 10% drop in the price of BTC.
The possible collapse on Bitcoin’sprice this past Friday by some analysts did not occur, and the price got back to the first levels of the week, above USD 55,000.
Almost ending the first quarter of 2021, bitcoin is close to increasing its price twice at the beginning of the year (+ 92%), while during March, it exhibited an appreciation of 18%. Thanks to this boom, market watchers stopped seeing the top of this bull cycle with more detail.
This thought is what analyst Willy Woo affirms in his most recent bulletin, based on the pattern of accumulation of BTC by investors, Woo anticipates that “much of the year is missing” before the market top of this cycle, with a probable local maximum of USD 74,000 in the coming weeks.
The price drop a year ago looks minuscule in the current bull cycle, and the price of BTC has risen almost 600% in the last 12 months. The previous two quarters have been particularly encouraging for the first cryptocurrency, especially the fourth quarter of 2020, with a 176% appreciation.
According to statements given to CNBC, the co-founder of the BTCC exchange, Bobby Lee, sees the cycle stop for the end of this year and anticipates that BTC will reach USD 300,000. However, Lee predicts that a “long winter” will affect the bull cycle.
Also, the analyst and influencer Juan Rodríguez – @ juanbiter—, sees a possible 30% increase in the price of BTC after the expiration of options this Friday.
Bitcoin and its Relationship with Regulators
The SEC member, Hester Peirce, advocated for the approval of a bitcoin ETF and criticized that commission’s strategy in 2020, denying numerous requests for a said financial instrument. This resolution shows a new signal in favor of the approval of applications already entered, which would most likely become a significant driver of the price of BTC.
For his part, the US Federal Reserve president, Jerome Powell, while criticizing cryptocurrencies in their role as money, slipped what could serve as a compliment: he affirmed last Tuesday that bitcoin is more similar to the gold than the dollar.
The director of growth of Kraken, Dan Held, published this Saturday the 27th a thread on Twitter dedicated to bitcoin’s institutional adoption. Held places the beginnings of this institutional approach to bitcoin in the first months of 2018.
By: Jenson Nuñez