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Bitcoin hit a new all-time high above $67,000 this week. The uptrend has been seen over the past few weeks. However, the most powerful momentum for the coin was the SEC approval of the first bitcoin futures ETF in the United States from ProShares.
As of this writing, bitcoin is trading at $61,795, according to CoinGecko.
ForkLog asked experts to predict the future dynamics of the price of the first cryptocurrency and point out the factors on which it will depend.
Janis Kivkulis, lead strategist at Exante:
The first futures bitcoin-ETF fund launched a rally in the cryptocurrency market and updated historic highs. Also worth noting here is the overall increase in appetite for risky assets among investors over the past month and a half.
U.S. stocks quickly recovered after the September sb dip and are now near historic highs, Chinese tech stocks are also retreating from their local bottoms. Against this backdrop, bitcoin looks like a modern global indicator of risk demand, and it is enjoying optimism bordering on euphoria, having added over 60% to its late September lows.
Technical analysis suggests that without significant fundamental obstacles, bitcoin has the potential to rise into the $92,000-$100,000 area. Judging by the amplitude of the previous rise, it may take 3-4 months to reach these targets. However, no one will undertake to predict how events will actually unfold.
Gleb Kostarev, director of Binance Eastern Europe:
For the cryptocurrency industry, the launch of bitcoin-ETF is one of the main events of 2021. I think that in the near future we will see a large influx of retail and institutional investors who were previously wary of investing in bitcoin due to the industry's not entirely transparent regulation and difficulty of entry. Thanks to bitcoin-ETFs, these concerns will no longer be a barrier to the influx of investors into the cryptocurrency industry.
The SEC currently has several other bitcoin-ETF applications pending, including one from the Grayscale fund. It is possible that their approval will be another boost for bitcoin.
Speaking about possible historical highs of the cryptocurrency price, I will say that Binance is always positive for further development and market growth, we are ready for new ATH.
Mikhail Chobanyan, founder of Kuna exchange:
[The market] is wobbling and cool. It is bad when [it] does not move.
Anton Kravchenko, CEO of Xena Financial Systems:
Bitcoin is in the range of its all-time high and is aiming to break it. A rise above $65,000 may trigger a wave of buying, on which the price may confidently pass to $78,000 and then with corrections will move to $90,000. The market is strong and its participants are optimistic.
It is also interesting that traders who have recently entered the market and are actively buying "growth" papers or hype names like Tesla will also flip from securities to crypto if the stock market declines, which is expected in late 2021 or early 2022. So cryptocurrencies are a growth market until the new year, but it's worth remembering that significant declines often occur after a rise.
Nikita Soshnikov, director of Alfacash:
The launch of the ProShares Bitcoin Futures ETF remains the main driver of the first cryptocurrency's growth. The volumes demonstrated in the first days of trading confirm the demand for such an instrument in the market of traditional financial instruments.
Other positive factors were the news of the Texas Firefighters' Pension Fund's investments in bitcoin and ether, as well as the appearance of cryptocurrencies at Walmart. These news, though, did not so much provoke as simply support the general excitement of bidders.
If bitcoin manages to firmly consolidate above $67,000, the coin has every chance of surpassing $70,000 in the coming week. Perhaps, not immediately, but through several local breakdowns with a subsequent correction below $70,000.
Further scenario may develop avalanche-like: if bitcoin fixes above $70,000, the probability of rush demand is high. And then the rate of the cryptocurrency will easily exceed $75,000 and $80,000 in a few days. But further growth seems to me unlikely.
Most likely, after breakdown of $80,000 bitcoin will stop at the ceiling of sell orders, placed by the investors, and will correct below this level.
New impulses, such as approval of a bitcoin-ETF tied directly to the cryptocurrency rather than futures, will be needed to fix above $80,000 and rise to $100,000.
Earlier, JPMorgan named the main factor in the current bitcoin rally.