Bitcoin to $100,000. Bitcoin to the moon. Bitcoin to infinity.<\/p>\n
The world\u2019s largest cryptocurrency is staging a comeback that has taken it up more than 50% from recent lows, reviving animal spirits and coaxing out sky-high price targets that, while a source of comedy for some, emerge when the asset is rallying.<\/p>\n
Out are predictions the digital currency was ready to retest $20,000 amid a slew of negative headlines that many said would push it lower. Back in vogue are calls for the coin to keep rallying again to its all-time highs and beyond.<\/p>\n
And there are plenty of superlatives to mark the moment: Bitcoin is up four weeks straight and is on pace for its second monthly advance. Overall, it\u2019s seen its fastest 21-day advance since February, the last time it was in the midst of vaulting toward records.<\/p>\n
\u201cIt\u2019s roaring back,\u201d Meltem Demirors, chief strategy officer at crypto fund provider CoinShares, said by phone. Despite new regulatory scrutiny, \u201cmany investors perceive this as positive news and a positive catalyst because it\u2019s clearing up a lot of the confusion or some of the uncertainty. And I think what\u2019s being demonstrated as well is the crypto community is no longer some esoteric corner of finance.\u201d<\/p>\n
The cryptocurrency is defying criticism over its toll on the environment and is advancing even as regulators around the world are promising tougher crackdowns. China, for one, has taken a number of steps to clamp down on crypto mining, among other things. In the U.S., policy makers are focusing on digital assets in a new way, with U.S. Securities and Exchange Commission Chair Gary Gensler last week calling the space the \u201cWild West.\u201d He said he wouldn\u2019t compromise on protecting investors in setting out a regulatory framework.<\/p>\n
Strategists are tossing those worries aside for now and are, instead, bringing out soaring price targets, which have long been a part of the investment thesis behind getting into cryptocurrencies.<\/p>\n
\u201cIt\u2019s still got plenty of room to get the old high,\u201d Bloomberg Intelligence\u2019s Mike McGlone said in a television interview. \u201cAnd guess what? If it just follows Ethereum, it goes to $100,000,\u201d he said, referring to Bitcoin catching up, percentage-wise, to the second token\u2019s performance.<\/p>\n
Fundstrat Global Advisors\u2019 Tom Lee also sees it reaching $100,000 — by the end of 2021. The firm\u2019s co-founder and head of research recommends investors follow a simple rule: If Bitcoin crosses above its average price over the last 200 days — a long-term momentum measure — then it\u2019s time to buy. The coin crossed that hurdle in recent days.\u201cWith Bitcoin crossing above its 200D, we think Bitcoin will rally strongly into,\u201d year-end, Lee wrote in a note.<\/p>\n
The rally above $46,000 comes even despite potential tax reporting requirements. A change to cryptocurrency reporting rules in Congress\u2019 infrastructure bill was blocked in the Senate Monday, leaving language for broad oversight of virtual currencies in the legislation that\u2019s set to pass the Senate.<\/p>\n
Bitcoin pared back gains Tuesday after reaching the highest since mid-May. Still, Blockchain Association\u2019s Kristin Smith said she was surprised the coin advanced during the infrastructure bill debate — she thought the opposite would have happened.<\/p>\n
\u201cI do not understand prices. I thought prices would be tanking because of the bad language that some suggested out there,\u201d she said on Bloomberg\u2019s \u201cQuickTake Stock\u201d streaming program on Monday ahead of the provision\u2019s blockage. \u201cPeople are seeing the effectiveness that the crypto community and the crypto industry has in Washington. And I think there\u2019s confidence that we\u2019ll ultimately be able to get the policies right.\u201d<\/p>\n
To be sure, tying fundamental developments to any of Bitcoin\u2019s moves has been a \u201cmistake,\u201d said David Donabedian, chief investment officer of CIBC Private Wealth Management.<\/p>\n
\u201cWhat\u2019s driving it is momentum and money flows, and a little bit of overall risk-on, risk-off sentiment in markets,\u201d he said. \u201cAny thing you say or write about Bitcoin you can always do a big percentage — it\u2019s up 50%, yes, but it went down 50% from April to June,\u201d he said, adding \u201cthere is no credible way to value it.\u201d<\/p>\n
But fans watching the showdown in Congress came to see it as representing validation of the industry. On Twitter, some inferred the community was a strong enough force to put senators in check, while others regaled in its rally, reiterating it will continue on to infinity.<\/p>\n
Other negative news has similarly been cast aside for now. China had recently reiterated its call to curtail Bitcoin mining and trading, but Ethan Vera of Viridi Funds said that\u2019s turned out to be a positive development for Bitcoin.<\/p>\n
\u201cThey banned it, yet the network remained pretty stable,\u201d said the firm\u2019s co-founder and chief financial officer. \u201cThat kind of shows the resiliency of the overall network and how it is bigger than a single country.\u201d<\/p>\n
Bitcoin to $100,000. Bitcoin to the moon. Bitcoin to infinity.<\/p>\n","protected":false},"author":341034,"featured_media":393947,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[44696],"tags":[187],"class_list":["post-409300","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-bitcoin"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/409300"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341034"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=409300"}],"version-history":[{"count":0,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/409300\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/393947"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=409300"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=409300"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=409300"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}