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BitMEX CEO Arthur Hayes Says Bitcoin Will Test $10,000 in 2019

CEO of cryptocurrency trading platform BitMEX Arthus Hayes has suggested that Bitcoin will get back to $10,000 this year.

Arthur Hayes, co-founder and CEO of cryptocurrency trading platform BitMEX, has predicted that Bitcoin (BTC) will get back to the $10,000 price point this year. Hayes shared his predictions in a newsletter published on March 22.

According to Hayes, the market recovery will begin in early fourth quarter of 2019. Hayes said:

“The 2019 chop will be intense, but the markets will claw back to $10,000. That is a very significant psychological barrier. […] $20,000 is the ultimate recovery. However, it took 11 months from $1,000 to $10,000, but less than one month from $10,000 to $20,000 back to $10,000.”

Earlier in March, the research arm of BitMEX revealed that its Ethereum Parity full node contained a “potential bug,” reporting that the Parity node “sometimes reports that it is in sync, despite being several hundred thousand blocks behind the chain tip.” The authors claimed that the purported bug could be exploited by an attacker in some circumstances, but states it is “highly unlikely” to happen.

In January, BitMex published research unveiling that the combined value of all the tokens that the analyzed projects had allocated to their own teams went down from $24.2 billion at the time of each individual token’s issuance to about $5 billion.

BitMEX said that the 2018 crypto bear market accounted for 54 percent of the losses, along with $1.5 billion worth of transfers to external addresses and other factors that brought projects’ holdings down even further. The report also highlighted that the historical combined peak value of the tokens controlled by the subject teams was more than $80 billion, using each coin’s individual price peak.

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BlockFi Lowers Interest Rates for Top Tier Crypto Deposit Accounts

Crypto lending company BlockFi has lowered the interest rates for their biggest cryptocurrency deposit accounts.

Crypto wealth management and lending company BlockFi has lowered the interest rates for their biggest cryptocurrency deposit accounts, according to an official blog post on March 22.

BlockFi launched the BlockFi Interest Accounts (BIA), cryptocurrency accounts supporting Ethereum (ETH) and Bitcoin (BTC), earlier in March. The accounts initially offered a 6.2 percent annual interest paid monthly in crypto. The company’s further analysis showed that almost 75 percent of the clients have a balance of less than 5 BTC or 150 ETH, while the median account balance is $7,000.

Per the recent announcement, balances of up to or including 25 BTC or 500 ETH will still earn the 6.2 percent annual percentage yield interest rate, while all balances over that limit will reportedly earn a 2 percent rate starting on April 1.

The company also announced that in April it will add a fiat withdrawal fee of 0.0025 BTC and 0.0015 ETH, although all withdrawals submitted prior to that will reportedly remain free. “These small adjustments are necessary to ensure that BIA can support as many clients as possible while maintaining the high quality services we provide to the average crypto consumer,” BlockFi explained.

Following its launch, BlockFi’s product faced a critical reaction from some industry players, specifically due to the company’s terms and conditions that allow it to determine the interest rate each month at its sole discretion, according to Bloomberg. David Silver, founder of the Silver Miller law firm, said:

“A superficial review of their splash page and their terms and conditions shows that their advertising is not necessarily what they’re guaranteeing […] and it’s understandable why people would be confused if they didn’t receive their 6.2 percent because BlockFi’s advertising makes it seem like that’s a guaranteed rate of return.”

Commenting on the critics, Zac Prince, chief executive of BlockFi, told Bloomberg:

“We didn’t launch with a 6 percent rate with the intention of changing it one month later and pulling a big gotcha on everybody. That would be really bad business.”

Last May, trading and clearing platform LedgerX launched a new BTC savings product that is licensed by the United States Commodities Future Trading Commission. Rather than just “hodling” and hoping that Bitcoin appreciates, investors can purportedly earn a fiat-based yield on their BTC by employing what is referred to as a call overwrite technique, wherein an investor deposits BTC into LedgerX, then sells a call option at a slightly longer date, with a higher strike call option.

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Crypto Markets Report Slight Gains While Gold Rises

Crypto markets are seeing slight gains, having overcome yesterday’s drop, with Bitcoin hovering around the $4,000 mark.

Friday, March 22 — All the top 20 cryptocurrencies, except Tether (USDT), are in the green, having overcome yesterday’s drop.

Market visualization from Coin360

Market visualization from Coin360

Bitcoin (BTC) is up 0.31 percent over the past 24 hours, and is trading at around $4,045 at press time. The coin started the day at $4,029, with a jump to as high as $4,053 in the middle of the day. In terms of a weekly view, Bitcoin has gained around 1.9 percent, while in terms of the month BTC has increased by just one percent.

Bitcoin 7-day price chart

Bitcoin 7-day price chart. Source: CoinMarketCap

Ethereum (ETH) is up 1.17 percent on the day, seeing today a high of $138.79 and low of $135. At press time, the leading altcoin is trading at around $138.14. The altcoin’s market capitalization is around $14.5 billion, while its circulating supply is around 105 million to press time.

Ethereum 7-day price chart

Ethereum 7-day price chart. Source: CoinMarketCap

Ripple (XRP) is trading at around $0.312, having gained 0.37 percent on the day at press time. Today, the coin dipped to as low as $0.310, while the intraday high was $0.314. The altcoin’s market cap is currently around $13.06 billion.

XRP 7-day price chart

XRP 7-day price chart. Source: CoinMarketCap

At press time, the only loser in the top 20 cryptocurrencies is USDT, which is down 0.19 percent on the day and is trading at $1.01 at press time. Cardano (ADA) has gained the most, around 10 percent, and is trading at around $0.058 at press time.

Total market capitalization of all cryptocurrencies is around $140.2 billion as of press time, according to CoinMarketCap. The daily trading volume of all coins is $30 billion at press time.

Total market capitalization 24-hour chart

Total market capitalization 24-hour chart. Source: CoinMarketCap

Yesterday, the Wall Street Journal reported that much-anticipated crypto platform Bakkt’s plans to store customers’ BTC from its Bitcoin futures could cause further delay in obtaining approval from the Commodity Futures Trading Commission (CFTC). According to the report, the CFTC has outlined various alternative options for Bakkt, including having the firm register as a trust company.

The traditional markets have reported gold’s rise after weak economic data from the euro-zone strengthened concerns about global slowdown and had an impact on risk sentiment. Bullion is now on track for its best week in nearly two months, according to CNBC.

At press time, gold has gained around 0.43 percent and is trading at around $1313 per ounce. Silver is down by 0.11 percent on the day, trading at the $15.42 at press time.

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Bitcoin, Ethereum, Ripple, Litecoin, EOS, Bitcoin Cash, Binance Coin, Stellar, Tron, Cardano: Price Analysis, March 22

If the crypto markets bottom out, volumes will pick up. Let’s look at the charts, and see where major coins are heading in the short term.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Market data is provided by the HitBTC exchange.

The crypto markets are eagerly awaiting the launch of institutional trading platform Bakkt. Its launch is expected to attract large investors whose involvement is needed to propel markets to the next level. Without even starting operations, investors are already valuing it at $740 million. This is likely to increase further if it can generate large volumes. However, some investors doubt whether it can live up to its expectations and earn enough to justify its valuations.

The volumes of the crypto exchanges have been under the scanner as The Tie published a report recently, which suggested that most reported volumes are fake. This puts the total volume of LBank and Bit-Z — which have overtaken the leading exchange Binance — in question.

As the market matures, fake reporting is likely to be severely dealt with, as seen in the case of South Korean cryptocurrency exchange Komid, where two of its leaders were handed a jail sentence.

If the crypto markets bottom out, volumes will pick up. Let’s consult the charts and see if we find a new uptrend in any of the major cryptocurrencies.

BTC/USD

Bitcoin (BTC) has been crawling higher for the past few days, but it is yet to make a dash towards the overhead resistance of $4,255. On the downside, it is taking support at the 20-day EMA and below it at the uptrend line. Both the moving averages are trending higher and the RSI in positive territory, which indicates that the bulls have the upper hand.

BTC/USD

If the BTC/USD pair does not scale $4,255 within the next few days, traders are likely to book profits that will drag prices lower. Aggressive bears might also initiate short positions if the pair fails to rise above the overhead resistance.

A breakdown of the 20-day EMA will be the first signal that the bulls are losing their grip. The bears will be back in the driver’s seat if the price sustains below the 50-day SMA. Critical levels to watch on the downside are $3,355 and below it $3,236.09. If the bears sink the digital currency below $3,236.09, it will hurt sentiment and result in panic selling, dragging prices lower.

The cryptocurrency will pick up momentum above $4,255 because it will complete a double bottom pattern that has a target objective of $5,273.91. Traders can trail the stops on the long positions higher to $3,550, in order to reduce the risk.

ETH/USD

Ethereum (ETH) has formed a small ascending triangle inside a larger ascending triangle pattern. The smaller ascending triangle will complete on a breakout and close above $144.78. The pattern target of this breakout is $163.68, but we anticipate the price to move up to $167.32. On a close above $167.32, the larger ascending triangle will complete that has a pattern target of $251.64.

ETH/USD

However, a breakdown of the 50-day SMA will invalidate the small ascending triangle and can result in a fall to the trendline of the larger ascending triangle. On a break below this, the bullish pattern will be negated and the ETH/USD pair can fall to $102.49.

The 20-day EMA has flattened out and the RSI is close to the midpoint, which suggests consolidation in the near term. Traders can keep a stop loss of $125 on the remaining long positions.

XRP/USD

There is hardly any volatility in Ripple (XRP). It continues to trade close to the moving averages. The attempt to breakdown of the uptrend line of the ascending triangle found buyers at lower levels on March 21. The price is again back above the trend line.

XRP/USD

If the support breaks, the XRP/USD pair can dip to $0.27795. We expect a strong support at this level, but if this also breaks, the next support to watch out on the downside is $0.24508. The flat moving averages and the RSI close to 50 suggests consolidation for a few more days.

On the other hand, if the pair bounces off the current levels, it can move up to $0.33108, above which a rally to the resistance line of the channel is probable. A move above the channel will signal a trend change and can carry the price to $0.40. Traders can keep the stops on the long positions below $0.27795.

LTC/USD

Litecoin (LTC) is currently stuck between $56.910 and the resistance line. The bulls have held the support but have failed to push the price above the overhead resistance. Both the moving averages are sloping up and the RSI is still in the positive zone. This suggests that the path of least resistance is to the upside. However, the failure of the RSI to break out of the negative divergence is concerning.

LTC/USD

On a breakdown of the 20-day EMA, the LTC/USD pair can correct to the 50-day SMA. Therefore, traders can trail the stops on 50 percent of the remaining long positions to $55 and keep the rest at $52. If the pair bounces off the current levels and scales above $62.45, it can rise to $69.2790.

EOS/USD

EOS has again failed to break out of the overhead resistance at $3.8723. This is a negative sign. The bears are now likely to attempt to sink the digital currency to the 50-day SMA.

EOS/USD

If the EOS/USD pair plummets below the support of the 50-day SMA and $3.1534, it will weaken and can drop to $2.1733. Therefore, traders can keep the stops on the remaining long positions at $3.10.

If the pair bounces off the current levels or the 50-day SMA and breaks out of $3.8723, it can move up to $4.4930. However, the 20-day EMA has flattened out and the RSI has also dipped to the midpoint. This suggests a range formation in the near term.

BCH/USD

Bitcoin Cash (BCH) has turned down from the overhead resistance of $163.89. The positive thing is that it did not break down of the 20-day EMA.  

BCH/USD

Both the moving averages are gradually sloping up and the RSI is in positive territory. This suggests that the bulls are in command. If the BCH/USD pair rebounds sharply from the current levels or from the 20-day EMA and breaks out of $163.89, it can rally to $175 and above it to $220.

However, if the pair plunges below the 20-day EMA, it can slide to the 50-day SMA. Therefore, traders can trail the stop loss on the long positions at $140.

BNB/USD

Profit booking in Binance Coin (BNB) pushed its price below the uptrend line, but the bulls are currently attempting to defend the 20-day EMA and push the price back above the uptrend line.

BNB/USD

The 20-day EMA is flattening out while the 50-day SMA remains strong. This indicates that the bulls are losing steam in the short term. A fall below the 20-day EMA will weaken the BNB/USD pair that can drag it to the 50-day SMA.

On the other hand, if the pair bounces from the current levels and rallies above $16.6442826, it can resume its uptrend and rally to $18. For now, traders can hold the remaining long positions with stops at $14.

XLM/USD

Stellar (XLM) has corrected to the 20-day EMA where it is finding some support. Both the moving averages are flattening out, which points to a consolidation in the near term.

XLM/USD

If the XLM/USD pair breaks down of the 20-day EMA, it can drop to the 50-day SMA. The uptrend line is just below this level. We anticipate the bulls to defend the zone between the 50-day SMA and the uptrend line.

Conversely, if the pair bounces off the 20-day EMA, it can move up to the resistance line. A breakout of this level can push the price to $0.14861760. The traders can keep the stops on the long positions at $0.08.

TRX/USD

Tron (TRX) turned down from the 20-day EMA on March 22. Both the moving averages are sloping down and the RSI is also in the negative zone. This shows that the bears are at an advantage.

TRX/USD

The bears will try to sink the TRX/USD pair to $0.01830 if the support at $0.02094452 cracks. On the other hand, the bulls will try to reverse direction from the current levels and scale above the moving averages. If successful, it can reach the top of the range at $0.02815521. If the pair sustains above the range or bounces off strongly from $0.01830, we might suggest long positions. Until then, we remain neutral.

ADA/USD

After consolidating for almost three months, Cardano (ADA) has scaled above our recommended buy level of $0.05650. We like the way the digital currency has risen after forming a large basing pattern. It should now rally to its first target objective of $0.066121, followed by a move to $0.080.

ADA/USD

Both the moving averages have started to trend up and the RSI has reached overbought levels. This shows that the bulls have the upper hand. On any dip, the ADA/USD pair should find support at $0.051468 and below that at the 20-day EMA. If both these supports break, the pair will lose momentum and might become range-bound once again. Therefore, traders can trail their stops higher to $0.048.

Market data is provided by the HitBTC exchange. Charts for analysis are provided by TradingView.

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Bitwise Tells US SEC That 95% of Volume on Unregulated Crypto Exchanges is Suspect

95 percent of volume on unregulated exchanges appears to be fake or non-economic wash trading in nature, an analysis from Bitwise Asset Management has argued.

95 percent of volume on unregulated exchanges appears to be fake or non-economic in nature, an analysis from cryptocurrency index fund provider Bitwise Asset Management has argued in a report dated March 20.

Bitwise reported its data and claims to the United States Securities and Exchange Commission (SEC) as part of a proposed rule change for its application to launch a Bitcoin (BTC) Exchange Traded Fund (ETF).

The analysis opens with the argument that while an ostensible ~$6 billion in daily traded volume for Bitcoin is reported across the spot markets:

“Under the hood the exchanges that report the highest volumes are unrecognizable. The vast majority of this reported volume is fake and/or non-economic wash trading.”

Bitwise sources its data from the widely-cited crypto statistics tracker CoinMarketCap (CMC), which it claims includes a large amount of this suspect data, “thereby giving a fundamentally mistaken impression” of the true size of the Bitcoin market.

Bitwise claims that roughly 95 percent of reported volume is fake and that the real market for BTC is thus “significantly smaller, more orderly, and more regulated than commonly understood” — amounting in reality to $273 million.

Bitwise first analyzes regulated exchanges — using Coinbase Pro as a case study — to reveal the nature of the trading patterns it deems to be trustworthy. Key characteristics reportedly include an “unequal and streaky” mix of red (sell orders) and green (buy orders) trades, whose distribution fluctuates considerably at any given time.

The report further argues that trading patterns on Coinbase Pro reveal “a greater-than-random number of round trade sizes,” which it characterizes as “more natural,” typically human behavior. Bitwise also analyzes spread as a parameter, noting that:

“It’s [the spread is] $0.01. At the time this screenshot was taken, bitcoin was trading at $3,419. That means bitcoin was trading at a 0.0003% spread, making it amongst the tightest quoted spread of any financial instrument in the world.”

Coinbase Pro reported around $27 million in daily traded volume of BTC at the time of Bitwise’s analysis — as compared with $480 million reported by Coinbene. The latter is used by Bitwise to demonstrate the patterns typical of what it characterizes as “suspicious exchanges.”

Suspect signs include an implausibly perfect alternating pattern of green and red trades, and a lack of round number or small value trades. On Coinbene, buy and sell orders also appear in timestamped pairs, with one offsetting the other. Moreover, the spread on Coinbene at the time of Bitwise’s analysis was $34.74: “that compares to $0.01 on Coinbase Pro. It is surprising that an exchange claiming 18x more volume than Coinbase Pro would have a spread that is 3400x larger.”

Suspect exchanges also reportedly demonstrate consistent volume 24-hours a day, as opposed to regulated exchanges, where volume corresponds to waking and sleeping hours.

Bitwise’s report concludes that its overall findings “demonstrate that this ETF application [for its Bitwise Bitcoin ETF Trust] meets both” of the SEC’s conditions for how a BTC ETF could satisfy the requirements of the Exchange Act.

As reported this week, new research from trading analytics platform The Tie proposed that almost 90 percent of crypto exchanges’ reported trade volumes — of all supported cryptocurrencies — were false.

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Report: Bitmain to Launch 200,000 Crypto Mining Rigs in China

Bitmain Bitcoin Mining China 2019

According to a report published by CoinDesk on Mazar. 21, cryptocurrency mining conglomerate Bitmain is looking to launch up to 200,000 new mining rigs in China, at a conservatively estimated cost of $80 million.

The move will allow Bitmain to take advantage of the relatively cheap hydroelectric power in China during the summer of 2019, with CoinDesk also reporting that the expensive deployment of equipment may end up being more cost-effective for the company than outright selling their inventory. CoinDesk also reports that the decision by CoinDesk is positive for the industry and miners, sending a signal of a “broader shift in the market, with miners preparing to invest again following last year’s contraction in capacity.”

Bitmain, which holds the distinction of being the largest manufacturer of cryptocurrency mining equipment by market share, can take advantage of the excess hydropower in China’s southwestern province for cheap mining costs relative to the broader market. According to sources in the region familiar with the situation, Bitmain has “already started discussions and making deals with farms to host its equipment so that it can be fully prepared.”

The report also includes information that Bitmain will be primarily deploying its newer model mining rigs, the AntMiner S11 and S15, which retail for around $500 and $1000, respectively, per unit. It is also unclear according to the sources which proof-of-work cryptocurrency Bitmain will be targeting to mine for. As CoinDesk points out, even at $80 million in projected costs to deploy the equipment in the new region, the move represents a “non-negotiable opportunity cost” considering Bitmain’s primary revenue source is from mining equipment sales as opposed to actual mining.

However, the company is caught in a difficult position due to the ongoing bear market that has extended into the beginning of 2019. While the company could attempt to selloff the bulk of their 200,000 intended units for deployment, the marginal profits that could be made from mining in the presence of cheaper electricity may provide the better sunk cost. CoinDesk calculates that, using conservative estimates, Bitmain may be able to secure a monthly profit of $7.7 million.

CoinDesk also reports that Bitmain’s scaling up in mining operations could send a strong signal to the broader market, particularly as cryptocurrency mining and coins prices continue to linger at relative lows. Estimated reports found that over 600,000 Bitcoin miners shut down operation in 2018 due to the falling con prices no longer proving profitable relative to mining costs, leading to the market being flooded with second-hand rigs being sold at a discount.

Despite the decline, Bitmain and other miners deploying to China in the upcoming wet season to take advantage of excess hydroelectric power could bring about a sharp increase in Bitcoin’s hash rate, with some estimates putting it at 70 quintillion hashes per second (EH/s), well above the all time network high of 60 EH/s.

Renewed mining interest in conjunction with building crypto adoption that has already started in 2019 could lead to a reversal in both coin prices and increased competition to capitalize on the market while prices are still depressed. With increased mining competition for Bitcoin, the selling price for newly minted coins should also rise, which could have a broader effect on BTC pricing.

The post Report: Bitmain to Launch 200,000 Crypto Mining Rigs in China appeared first on Ethereum World News.

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Japan: SBI Group Sets Up Spin-Off to Manufacture Crypto Mining Chips

SBI will consult with a mining electronics entrepreneur Adam Traidman after forming SBI Mining Chip Co., Ltd.

Japanese financial giant SBI Group has created a dedicated subsidiary that will manufacture cryptocurrency mining chips, the company confirmed in a notice on March 22.

SBI, which has launched spin-offs covering various aspects of the cryptocurrency industry, now says it wishes to expand its influence in the mining sector through the creation of SBI Mining Chip Co., Ltd. (SBIMC).

The company will join industry stalwart manufacturers, chief among which is Bitmain, which released its latest product this week.

“The SBI Group strongly promote [sic] on a wide range of businesses based on the digital asset, including cryptocurrency exchange business and other blockchain related businesses,” the notice reads, continuing:

“The Group has practiced its cryptocurrency mining business […] overseas and has now decided to expand its business scope to the manufacturing of mining chip itself and development of mining systems, through SBIMC.”

The latest project meanwhile will see guidance from Adam Traidman, a seasoned Silicon Valley entrepreneur in semiconductors and associated electronics.

“The SBI Group will promote efficient, reliable and sustainable mining operations to develop a sound and solid cryptocurrency market,” the notice promises.

To date, SBI had only mined crypto Bitcoin Cash (BCH) via its subsidiary, beginning and ending the practice last year after concerns arose.

In September 2018, Jihan Wu, co-founder Bitmain and head of the mining pool SBI was using, claimed that the company was seeking to subvert its operations to benefit Craig Wright, the notorious entrepreneur who became a central figure in Bitcoin Cash’s contentious hard fork two months later.

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Bakkt Gets $740 Million Valuation But Investors Have Questions, Sources Reveal

The significant valuation was leaked to the media following Bakkt’s 2018 Series A funding activities.

Intercontinental Exchange’s to-be-launched institutional trading platform Bakkt has earned a $740 million valuation after it raised over $180 million in funding last year, anonymous sources told cryptocurrency industry news outlet The Block on March 21.

Bakkt, which has yet to launch any investment products and continues to liaise with regulators, could increase its valuation even further should it raise further funds.

At the same time, the sources said questions among investors remained about their risk-return ratio, given Bakkt has yet to get the official go-ahead to launch and will operate on different terms from traditional platforms.

“From a cash-flow perspective, Bakkt will not be earning much based on their proposed contract fees, so they really need a lot of volume,” one source told The Block, adding:

“A lot of things will need to line up for investors to receive returns that they would typically expect for a Series A.”

As reported, United States regulator the Commodity Futures Trading Commission (CFTC) remains in talks to iron out kinks in Bakkt’s operations which have seen its debut pushed back several times.

Nonetheless, according to Commissioner Dan Berkovitz, there appears to be a strong will among lawmakers to ensure Bakkt’s first product — physically-delivered Bitcoin (BTC) futures — makes it to market.

Bakkt’s giant valuation pre-launch comes as the regulatory landscape in the U.S. surrounding crypto products remains uncertain across the board.

As Cointelegraph reported, the fate of the Bitcoin (BTC) exchange-traded fund (ETF) application by VanEck and SolidX, filed and withdrawn several times, currently hangs in the balance as public feedback appears to turn against the concept.

VanEck has sought on multiple occasions to assuage fears over the provenance of its offering.

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Bitcoin At $400,000 Isn’t A “Fool’s Paradise,” Claims Crypto Analyst

Analyst Calls For Bitcoin To Breach $100,000 Or Even $400,000 In Next Rally

It’s been over 15 months since Bitcoin breached $20,000. And since then, mainstream media, cynics, and representatives of traditional institutions have done their utmost to put down cryptocurrencies.But, industry commentators have kept their heads high, as they await BTC’s next move higher.

Naeem Aslam, a crypto-friendly analyst at Think Markets, recently divulged his thoughts on the current state of the digital asset market. Unsurprisingly, he was rather bullish.

In a March 19th blog post on Think Markets’ website, Aslam noted that while the tussle for BTC holding above $4,000 has often been won by bears, “long-term investors” shouldn’t “worry about these short-term levels.” Echoing comments from Alec Ziupsnys, he explained that “catching the extreme low (bottom)” is “extremely arduous,” Aslam goes on to explain that more likely than not, the so-called “crypto winter” is coming to an end.

He writes that the next bull rally in the cryptocurrency asset class will likely push BTC a minimum of five times higher than its previous all-time high, meaning his low-end target is $100,000. His high-end target, on the other hand, is $400,000, as Aslam explains that this would mean history would have repeated itself (2017’s Bitcoin run was from $1,000 to $20,000 — a 20x return). It was elaborated:

This number is not a fool’s paradise. $400,000 is a simple math calculation: approximate percentage projection of the price which we experienced during the last bull run.

Not The Only Optimist

While BTC breaching $400,000 is likely hard to imagine for most traders, many analysts expect the cryptocurrency market to embark on another parabolic rally… eventually. In a comment issued last July, The Crypto Dog, a “STEM Ph.D. drop-out” turned crypto trader, explained that Bitcoin still holds the “same economic properties” that allowed it to go to the moon at least four times now.

Thus, he determined, who’s to say that a rally to “astronomical levels” won’t happen again? In a later tweet, he remarked that greed is a “huge potential factor” that could be behind future bull markets, adding that there’s “more than one path to hyperbitcoinization.”
Hyperbitcoinization, for those who missed the memo, is a term often used by Bitcoin crusaders to describe BTC consuming fiat currencies.

Crypto Dog is far from the first to have touted this theory. Crypto personality $carface recently noted that it would be unfair to claim that there’s a high likelihood that Bitcoin cannot undergo a “boom and bust” cycle again. Backing his prediction, he cites a quote from Sir John Templeton, in which the economist said that the four most dangerous words in investing are “this time it’s different.” This reference is, of course, rebutting cynics’ claim that Bitcoin won’t rally to new all-time highs… eventually.

$carface writes that investors should “roll the dice” and buy Bitcoin, as BTC could appreciate to $102,000 to $336,000 if it follows historical trends of rallying 5.1 to 16.89 times higher than its previous peak.

Title Image Courtesy of Tim Mossholder 

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