Bitcoin prices rising again. Is the level sustainable?
Will Bitcoin be able to cross its all-time high of nearly $64,000 again in near future?
Bitcoin touched the lowest mark of $28,901 on June 22, 2021. Since then its value has been range bound and is currently trading at the level of $37,024. In the last seven days, its prices have jumped up by 24%. The recent jump in prices is due to Tesla CEO Elon Musk’s remarks about crypto that he has invested in Bitcoin and Ethereum. He was quoted in the forum sponsored by Crypto Council for innovation saying, “I pump but I do not dump”. What does this recent rally mean for crypto investors? Will Bitcoin be able to cross its all-time high of nearly $64,000 again in near future?
“Bitcoin has been range-bound for a period of more than two months after May and has been hovering in the range of 30k-38k for a while now. This clearly indicates that the market has been evolving, and investors are growing increasingly mature, which has, in turn, put a considerable check on the overall market volatility. But having said that it has been observed that a period of low volatility is followed by a period of high volatility and vice versa. So while Bitcoin has been range-bound for a few weeks, we might see high volatility in the markets soon, though not in the same proportion as earlier,” said Gaurav Dahake, founder and CEO, Bitbns.
He added, “Besides that, we saw a lot of accumulated short-term interest getting liquated, which took the markets higher, and now we are witnessing more inflow of funds from users. If this is to continue, we might soon cross all-time highs by the end of the year.”
Twitter founder Jack Dorsey, who also owns the digital payments firm Square, also announced recently to launch a Bitcoin wallet. He said that he was a staunch believer in the currency as a way to reduce transaction costs and improve people’s lives. He also added that Bitcoin is a native currency for the internet that would allow more people to make cross-border payments and facilitate different online business models.
“Bitcoin is still giving a massive return to those who invested last year. We don’t know how it will behave in the short term but in the long term, the outlook is positive. In the last three to six months, new investors of around 30-40% have been added globally. These are positive developments but when will it affect prices we don’t know. I think in 2-3 years there will definitely be an upward trend. It is difficult to say in the short term,” Nischal Shetty, founder, and CEO, WazirX earlier told Money9.