Where is the next bull market for BTC?
Bitcoin halvings have come and gone. Many waited with bated breath for a sudden price spike, but that didn't happen.
Many of the more bullish crypto asset analysts had expected a massive post-halving increase in bitcoin prices, but this was a fundamental misunderstanding of the long-term nature of bitcoin as an investment. It is believed that the halving will lead to a long-term bull market for Bitcoin, and within 18 months, Bitcoin may reach a high of $100,000 to $120,000. Of course, there is always the possibility of a decline along the way, which could be due to another black swan event such as a worsening of the COVID-19 pandemic, at which point other investable assets would be affected as well.
Markets are always unpredictable, just like cryptocurrencies. Experts can say that a bullish trend could be imminent, but it's still a big bet.
For now, though, it looks like bitcoin will stage a comeback as it continues to appreciate. The uptrend has been steady for weeks and is a most positive development amidst the gloom of the lockdown period.
Raoul Pal believes investors are increasingly looking to Bitcoin as a valid asset as hedge fund managers weigh its future, with a $10 trillion market capitalization forecast. investment vehicle.
In a Keiser report released two days after the Bitcoin halving, Pal recently spoke about how Bitcoin’s transition period will signal global hedge funds to buy Bitcoin to stay competitive.
Although bitcoin entered mainstream consciousness during the 2017 bull run, it has yet to make sense to people, Pal said. With a current market capitalization of around $175 billion, Bitcoin is comparable to an average U.S. company.
However, Pal believes that once Bitcoin transitions from a niche investment to an asset class, things will change.
The entry of traditional financial companies is absolutely positive for Bitcoin. On May 8, American investor Paul Tudor Jones invested in Bitcoin with his Tudor BVI fund, allocating about 2% of his investment portfolio to this emerging asset. Paul believes that Jones may eventually convince other big players, including his billionaire friend Stanley Druckenmiller, to buy bitcoin.
Chamas Palihapitiya, a venture capitalist and founder of Social Capital, told CNBC, “Now, even Paul Tudor Jones is suddenly looking at Bitcoin because we’re in this massive deflationary Cycles. I’m still having a hard time finding anything that’s not bitcoin related.”
And more and more encrypted asset companies are entering Wall Street as customers. JPMorgan Chase, one of the international banking giants, has added Coinbase and Gemini to its client list, according to multiple reports last week. This is a significant move, as it shows that traditional banks are not only aware of the fact that customers want access to crypto assets, but it also brings further credibility to the industry. It will be interesting to see who follows JPMorgan in a similar deal, and what else to gain from the relationship.
In the cryptocurrency industry, if you want to say what the next big event that everyone is looking forward to after Bitcoin is halved, it is undoubtedly that Ethereum 2.0 is about to make a strong landing.
In the big bull market in 2017, Ethereum deservedly became a "bull market catalyst" or even an "engine" with its hot ICO craze. The answer is worth looking forward to.
The PoS staking model is likely to attract a large amount of funds into Ethereum 2.0 for staking to earn rewards. On the one hand, this brings the demand for ETH, and on the other hand, it brings a reduction in circulation. Coupled with the current growth of DeFi projects, more and more ETH will need to be locked in smart contracts as collateral.
Ethereum’s performance is correlated with Bitcoin, and if these upgrades go well, we may see Ethereum increase in strength and possibly even compete with Bitcoin for dominance in the longer term.
This will inevitably stimulate the strength of ETH, and at the same time it will inevitably detonate the rise of BTC prices. We will wait and see.
