The cryptocurrency again demonstrated its limitless capacity to recover by hitting nearly USD 67,000, a rise of 5.87%. Cryptocurrency market analysts predicted that the cryptocurrency could reach between USD 65,000 and USD 168,000 by December.
The price of the pioneering cryptocurrency recently hit a new all-time high amid the launch of the first Bitcoin ETF in the United States. No one knows where the value of the first crypto asset on the market will go after reaching that milestone.
In May, Bitcoin surprised the cryptocurrency market by setting what would then be an all-time high of USD 64,800. On October 20th, the cryptocurrency again demonstrated its limitless resilience by reaching almost USD 67,000, an increase of 5.87%.
Bitcoin is trading at around USD 63,300, after a loss of about 5% in the past two days, according to CoinGecko. However, about three months ago, the price of Bitcoin bottomed out at USD 29,000.
Some Factors Driving the Price of BTC Higher
The US Securities and Exchange Commission (SEC) recently approved the first Bitcoin futures ETF of the country. That element seems to have boosted the new all-time high for the cryptocurrency.
Bitcoin exchange-traded funds (ETFs) are investment vehicles that track the price of the leading cryptocurrency. In addition, the way to trade them is similar to that with a stock.
During its first day of operations, the ProShares Bitcoin Strategy ETF closed with a rise of 2.59% at USD 41.94. The following day, the ETF increased by 3.76% to USD 43.57.
Will Hershey, CEO of Roundhill Investments, stated that their trading volumes were exceptional during the first day. BITO traded over USD 700 million, placing it ahead of retail ETFs like BUZZ and ARKX on their launch days, according to CBNC.
James Quinn, a managing partner at Q9 Capital, believes that launching that new investment product will prove significant for Bitcoin. He said that trades and hedges underpinning ETFs mean the activity will flow into the market and the price of Bitcoin.
What Will Happen After the All-Time High
That is one of the most common questions when the price of Bitcoin makes such upward movements. Makara CEO Jesse Proudman believes that will depend on whether there is support above USD 65,000.
If the price of Bitcoin achieves that support, the classic bullish rallies of the fourth quarter could lead to some high predictions. However, high selling pressure could cause the next stage to take some time to materialize.
Cryptocurrency market analysts point to Bitcoin reaching a price above USD 80,000 by the end of 2021.
Excitement over the new Bitcoin ETF has made analysts at Fundstrat Global Advisors predict a value of USD 168,000. The firm did not specify when that would happen, but its research chief, Tom Lee, says more people will allocate money to Bitcoin.
Renowned cryptocurrency analyst PlanB is targeting a price above USD 135,000 for December, in the worst scenario. The graph of the Bitcoin S2F Model has usually proven that his predictions of that scenario have been very accurate.
By Alexander Salazar
