Month: März 2021

These are their most bullish bitcoin predictions for 2021

Top crypto traders in interview: These are their most bullish bitcoin predictions for 2021

Ask ten crypto advocates about the price of Bitcoin in a year’s time – and you’re likely to hear ten very different answers. Some use astrology, some use technical analysis and some use on-chain voodoo art for their predictions.

And then there are ex-institutionals like Tone Vays, who rely on a mix of the most rigorous fundamental and technical analysis to make their calls.

Vays worked on Wall Street for nearly 10 years, first as a risk analyst at Bear Stearns and later as a VP at JP Morgan Chase after the 2008 financial crisis. His expertise is in economic trends, by Bitcoin Legacy trading and risk analysis, and he’s been a Bitcoin bull since 2013.

Today, Vays met up with Alex Fazel for a segment on crypto edutainment channel Cryptonites. Joining him is „Carl the Moon“, a popular crypto investor and educator who runs a YouTube channel on Bitcoin news and is known for his easy-to-understand technical analysis videos for Bitcoin newbies.

So what are the analysts predicting?

Vays explains that rumour has it that nation states are also jumping on the bitcoin bandwagon:

„Now that I’m here in Dubai, I’m hearing all these rumours that Dubai is about to (buy bitcoin) and that the UAE is about to buy up a bunch of bitcoin.“

But for Vays, institutional FOMO is not the only reason for his bullishness. He says his experience with the last US election was the biggest driver.

„I felt they cheated. And that made me lose respect for the US government,“ Vays says, adding:

„It made me lose respect for the US economic system. And that is probably why the dollar is faltering, not because they are printing too many dollars. People are losing confidence in the dollar. And businesses are scared. Everybody is scared.“

Vays comments that once the above begins and people lose confidence in their government, they move their money to anything they have confidence in. „And Bitcoin is the ultimate alternative,“ he said.

Incessant money printing

Complementing Vay’s comments about how people are losing faith in government, Carl explains in the video: The current macroeconomic environment is setting the stage for the environment that Bitcoin’s creators envisioned (go to the Plus500 buy Bitcoin guide).

„This scenario is literally what Bitcoin was made for.“

Bitcoin is the best place to hide „from this whole catastrophe“, Carl said.

Regarding short-term price targets, Vays explains, „He sees BTC reaching $65,000 before a more serious correction. „But now that we’ve just had a 20% correction, I think we’ve delayed it a little bit“. And:

„If the price goes back above 55, I will now look for 65 or even 75. Before that 40% correction comes.“

Carl, on the other hand, sees it a little differently:

„I expect the first peak to be in the $65,000 to $75,000 range, and the second peak to be somewhere between $100,000“ – even a $200,000 target is not out of the question, says the trader.

Could this be the “moment of truth” for Bitcoin?

Bitcoin (BTC) has reached a „breakthrough“, according to a Citi report.

The growing adoption by institutional investors could lead to a „massive transformation“ for BTC.

On the other hand, BTC could face a „speculative implosion“

Bitcoin (BTC) has reached a “breakthrough”, according to a Citi report, Reuters says .

According to the report , the industry’s flagship cryptocurrency , BTC, could become the preferred medium for international trade or face a “speculative implosion”.

Over the past decade, Bitcoin has been primarily championed by retail investors. However, BTC has been increasingly adopted by institutional investors, such as Tesla and Mastercard .

This growing institutional acceptance could lead to a “massive transformation” of BTC, Citi said. Such adoption has already seen the price of BTC increase tenfold, from $ 4,700 in March 2020 to its current price of around $ 47,000 .

Le BTC en position optimal

According to the Citi report, the large-scale adoption of bitcoin would depend on the acceptance by major financial players of digital currencies and wallets. For example, some central banks intend to issue digital currencies and a stablecoin .

If the latter started to appear and if individuals and businesses began to use them through digital wallets, BTC would be “in an optimal position” to become the preferred currency for international trade, according to the report. This is due to the already global reach of BTC, its traceability and its ability to make fast payments.

However, for BTC to replace the dollar as the defacto currency of world trade, the market would need to change to allow for broader participation as well as clearer oversight by financial regulators. Macroeconomic changes could alter demand for BTC in the meantime, the report adds.

“There are a host of risks and obstacles that stand in the way of Bitcoin’s progress,” Citi analysts wrote. „But comparing these potential obstacles with the opportunities leads to the conclusion that bitcoin is at a decisive stage.“

Recent movements in the price of BTC

In February, BTC first crossed the $ 50,000 threshold, reaching a peak of $ 58,413 on Sunday, February 21. Citi attributed the rise to the growing prospect that BTC could serve as a hedge against inflation, an argument shared by MicroStrategy CEO Michael Saylor.

However, the price of BTC plunged over the past week , hitting a low of $ 43,813 on February 28. Citi analysts cite skepticism about the sustainability of such a high price point as the cause of the correction. Bitcoin is currently trading around $ 47,000.