A necessary premise: this post has informative and speculative purposes, it does not constitute an analysis nor is it intended to be an invitation to spend. Be careful and above all autonomous in managing your savings.
Bitcoin has gained new upward momentum in the past 48 hours: high levels of institutional adoption and indicators of all sorts seem to herald a prolongation of this trend in the long term.
The new life of Bitcoin
In a recent report, Mike McGlone, one of the strategists at Bloomberg Intelligence, says that Bitcoin is in a “transition phase”. What does it mean? Means that this cryptocurrency of reference could go from being a “risk asset” to a global reserve asset.
Comparing the “pace” of Bitcoin's 2017 uptrend to the current one, McGlone estimates that the price of Bitcoin could reach a peak of around 400.000 dollars (almost 340.000 euros) by the end of the year.
In the graph you see below, you notice a correlation between the cryptocurrency's price spikes and an increase in its liquidity index.
Where is the price of Bitcoin going in the short term?
In the short term, the trend that the price of Bitcoin has seen recently could reverse and point decidedly upwards. A “huge” amount of GBTC stock (for those who don't know what it is) will be “unlocked” in the near future. And the reference cryptocurrency could benefit greatly from it.
Other estimates converge
The creator of Bitcoin's Stock to Flow model, Plan B, has published estimates that match, perhaps even exceed, those of Bloomberg analysts. In its latest chart based on its (controversial) reference model, Bitcoin's price may be approaching dollars 500.000 (over 400.000 euros) by the end of 2021.
In other words: are we only at the beginning?
Bitcoin is currently trading at € 46.216. Although the monthly chart shows gains of 10,1%, the weekly chart is in the red with losses of 7,5%.
