Bitcoin’s recent rise above $42,000 signals the start of a possible supercycle, Bloomberg notes. According to Bloomberg, the so-called “Bitcoin supercycle” has captivated cryptocurrency market enthusiasts. The anticipation of the approval of a Bitcoin exchange-traded fund (ETF) in the US is seen as crucial to BTC’s resurgence.
Bitcoin’s (BTC) rise above $42,000 marks the start of a possible bullish rally, which would take it above $500,000, according to Bloomberg. Its defenders say it is reshaping the traditional order of Wall Street.
The Bitcoin Supercycle Is in Its Early Stages
In a recent report published by Bloomberg, it is stated that the boom known as the “Bitcoin supercycle” has not only captured the attention of market enthusiasts, but has also fueled optimistic predictions, which range from immediate targets of $50,000 to projections exceeding $530,000.
Meanwhile, many analysts believe Bitcoin, which has recently surpassed $40,000, is already in overbought territory. However, skeptics warn against these predictions due to the speculative nature of the cryptocurrency market.
One of the main factors that have contributed to the increase in the price of Bitcoin is the expectation surrounding the possible approval of a Bitcoin exchange-traded fund (ETF) in the United States.
The prospect of a Bitcoin ETF gaining regulatory approval has caused a significant shift in market dynamics. Furthermore, it will lead to mass adoption among institutional investors.
It was recently reported that Bloomberg analyst Eric Balchunas maintains his 90% confidence in Bitcoin ETF approval by January 10, 2024.
Speculation on Bitcoin ETF Approval
The idea behind an ETF is that it could simplify the process for asset managers to invest on behalf of clients. This way they would potentially attract a significant number of investors who may not have invested in cryptocurrencies before.
Despite the optimism, some market analysts, such as Matt Maley, chief market strategist at Miller Tabak & Co, urge caution, emphasizing the importance of liquidity programs.
Meanwhile, cryptocurrency believers remain undeterred in the volatile market.
However, skeptics like Michael O’Rourke, chief market strategist at Jones Trading, maintain a critical stance against Bitcoin.
He calls Bitcoin a “purely speculative game” with limited utility beyond speculation and an illicit money transfer tool.
Bitcoin Exceeds US$42,000 for the First Time Since April 2022
Bitcoin has surpassed $42,000 for the first time since April 2022, driven by widespread enthusiasm over hopes of U.S. interest rate cuts and traders’ bets on the imminent approval of bitcoin exchange-traded funds. on the stock market in the United States.
The world’s largest cryptocurrency hit a high of $42,162 on Monday, its highest level since April 2022, seemingly shaking off the slump that had settled over cryptocurrency markets following the FTX collapse and other crypto company failures last year. past.
At 1256 GMT, the cryptocurrency was trading up 4.4% at US$42,754. Its 50% rally since mid-October has “appeared to mark a decisive shift away from the bearish trend of 2022 and early 2023,” said Justin d’Anethan, head of Asia-Pacific business development at Keyrock, a firm of digital asset market creation.
D’Anethen said evidence of institutional buying through November showed a new stage of interest and that, while future pullbacks were not inconceivable, the lows reached around $16,000 a year ago “probably marked the bottom.”
Bitcoin investor MicroStrategy revealed last week that it purchased another $593 million in bitcoin during November.
By Audy Castaneda
