Bitcoin is under immense selling pressure at press time, and printing discourages lower lows. While the coin finds a ceiling at $66,000 and bears targeting a retest of $60,000 or even May lows, one analyst is defiant.
Bitcoin Analyst Upbeat: Next Stop $500,000?
In a post on X, the analyst admitted that the coin is currently treading on a precarious path. As things stand, Bitcoin is teetering between the possibility of mass institutional adoption in the next few months and the crashing likelihood of a damaging price dump from the colossal Mt. Gox payout set for July 2024.
Even so, while there is a chance Bitcoin might crash, even retesting $60,000 in the coming days, the analyst said the prospect of price gains next year far outweighs the possibility of a crash dump. According to the trader’s assessment, Bitcoin could sell off to $40,000 on the lower end.
However, if buyers take charge, the coin could float to as high as $500,000 within 12 months. This assessment presents a compelling risk-reward proposition that would massively benefit HODLers who can’t be shaken by short- or medium-term bear cycles.
Considering what’s on the table, the analyst emphasized the “asymmetric opportunity presented by Bitcoin.” It is a feature, the trader argues, that makes the world’s most valuable coin the “most attractive investment in the market.”
Spot ETF Inflows To Counter Mt. Gox BTC Sale?
Specifically, the analyst banks on BTC to rise due to institutional inflows. Based on this outlook, the trader assesses that if pension funds and advisors allocate $200 billion to spot Bitcoin exchange-traded funds (ETFs), it would be enough to propel prices by nearly 12X in the coming months.
In a recent report, Bernstein said institutions will likely start allocating funds in spot BTC ETFs in Q3 and 4 2024. If true, this development would be a game-changer since it would pave the way for a new wave of deep-pocketed investors.
Despite the billions of inflows to spot Bitcoin ETFs in the last five months, there have been waiting on the sidelines for improved liquidity. If anything, Bernstein is bullish, predicting the coin to reach $200,000 by 2025 and $1 million by 2033.
Bullish as analysts may be, there are potential roadblocks along the way. In late May, over 140,000 BTC were moved from multiple wallets belonging to the defunct Mt. Gox exchange to a new address, data from Bitinfocharts show. To compensate the Mt. Gox hack victims, creditors will sell BTC and distribute them from July 2024.
Feature image from Canva, chart from TradingView
Powered by WPeMatico
