Bitcoin price – Bitcoin may retest all-time excessive on rising confidence

by AFIQ AZIZ / pic by BLOOMBERG

BITCOIN may have the ability to retest its all-time excessive on rising traders’ confidence and a shift in funding desire.

In accordance with Tokenize Expertise (M) Sdn Bhd, that is attributable to a number of occasions which lure traders to place of their cash within the new haven asset class.

Within the final 30 days, bitcoin’s price had surged by 54.43% from solely US$11,460 to the best of US$18,157 (RM74,262) as of yesterday midday, primarily based on knowledge by coinmarketcap.com.

The main cryptocurrency’s value surged by 19-fold to US$20,000 in December 2017 inside a 12-month interval.

At present, bitcoin’s price is 100% greater than what was recorded in January, when it was solely valued at solely US$7,271.

Moreover, that is additionally the primary time for the biggest cryptocurrency to move the US$17,000 mark since December 2017.

“Within the third quarter of this 12 months (3Q20), we are able to see many establishments have come to put money into bitcoin.

“Primarily based on the technical chart, we are able to clearly see the important thing resistance of US$14,000.

“As such, the price may retest the US$14,000 mark earlier than heading to US$20,000, or it could possibly progressively transfer towards that stage from right here.

“It is believed there is a higher than 50% probability that the price would be able to retest the US$20,000 value before the year ends,” Tokenize Expertise CEO and CTO Hong Qi Yu instructed The Malaysian Reserve (TMR) yesterday.

Bitcoin, which dominates 65% of greater than 7,700 cryptocurrencies out there, is now valued at US$337 billion by way of market capitalisation, surpassing the December 2017 stage which stood at US$320 billion.

In accordance with coinmarketcap.com, the entire market capitalisation for the cryptocurrency market has reached greater than US$511 billion now.

Hong mentioned the curiosity of institutional consumers for bitcoin has instilled traders’ confidence to push bitcoin’s value additional within the close to future.

One other digital asset exchanges within the nation, Luno Malaysia Sdn Bhd, believes that a number of fascinating developments on the earth have additionally influenced the take-up on cryptocurrency market, particularly bitcoin.

Amongst others are the issues round quantitative easing (and Covid-19) stimulus programmes all over the world, resulting in financial inflation and forex debasement.

“Many investors are moving their cash to assets which are perceived as better stores of value like gold and bitcoin,” Luno Malaysia nation supervisor Aaron Tang instructed TMR.

Grayscale Investments — which is the world’s largest crypto asset supervisor, whose belongings beneath administration (AUM) are sometimes considered as a barometer of institutional curiosity — reported AUM improve by greater than US$1 billion in 3Q20 alone.

Early this week, Grayscale introduced that its complete AUM has reached nearly US$10 billion.

“More recently, Square Inc (led by Twitter Inc co-founder Jack Dorsey) announced it had converted US$50 million (or around 1% of its assets) into bitcoin,” Tang mentioned.

“PayPal Holdings Inc has additionally introduced it now permits its US clients to purchase, promote and maintain bitcoin, with plans to roll out this service to different nations in 2021.

“Paypal is also planning to allow cryptocurrencies to be used at 26 million merchants on its network starting next year,” Tang added.

Nevertheless, Tang stays cautious on any cryptocurrency value prediction as it’s at all times tough to make short-term price predictions as a consequence of market volatility.

“What we can say is we are longterm believers in bitcoin’s technology and its value in the long term.”

As for the native market, Tang mentioned Malaysian traders’ urge for food for bitcoin and cryptocurrency has grown in tandem with price motion and international markets.

As of now, he mentioned there isn’t a clear correlation between authorities insurance policies — just like the introduction of stimulus packages — and Malaysians’ behaviour relating to investing in cryptocurrency.

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