Gold prices rose amid weak trading in light of the holiday, as those gains were…
Bitcoin may overtake the dollar and gold as a reserve asset of value
Bitcoin Price Outlook – 5th March 2021
Bitcoin closed last week’s transactions with its worst losses since the global market defeat in March 2020, sparking speculation that the cryptocurrency was about to enter a corrective downturn. However, the indicators on the chain tell us a different story, as the digital currency rebounded sharply during a session. Monday.
The recent sell-off in the digital currency emerged against volatile movements in government bond markets, as the spike in yields last week called into question the prospect of a prolonged period of low-interest rates, which supported bitcoin’s price hike last year.
Despite this, the presence of the supporting fundamentals brewing in the cryptocurrency space increases analysts’ expectations that Bitcoin will post another bullish trend towards its previous highs.
Bitcoin is a global digital store
The leading digital currency in 2021 turned from a speculative risk asset to a global digital store of value. The currency did not witness this upward trend – which nearly tripled its price from 2017 high – but more importantly, it has seen significant adoption by institutions that use it as a reserve asset instead of the US Dollar in light of its depreciation and a store of value instead of gold.
Bitcoin’s price has been on an uptrend for an entire year now, rising from under $ 4,000 to over $ 50,000 at the current peak, and given that analysts expect a higher value closer to $ 100,000 or much higher, it’s hard to be bearish to Previous Low Levels.
The currency boom not only came from retail investors again but this time it finally managed to attract institutional investors, at last. The effect that the high net worth investor category had on the price hike was dramatic, resulting in a rise of more than 1000% within a year. Bitcoin is currently up close to 70% year-to-date.
Outflows from cryptocurrency exchanges crossed over 10,000 Bitcoins per week and have not subsided yet. Although the price action has stalled recently, both metrics and technologies in the chain appear to support a sustained uptrend for a longer period.
$100,000 could be the next doorstep
The leading digital currency in 2021 managed to surpass its previous target price threshold of $ 50,000 and a market value of $ 1 trillion within just two months of this year
Driven by rising demand versus lower supply and an increasingly favorable macroeconomic environment, the report indicates that Bitcoin has matured as a category. Assets could reach the $ 100,000 price threshold by the end of 2021.
Recent reports indicate that the relative volatility of the cryptocurrency is declining against gold, and if the emerging digital assets continue to behave similarly, their volatility will be less than that of Amazon and other stocks within two years.
Reports also indicate that the current price volatility and selling are mainly coming from retail investors and it is very similar to the early 2017 selling pattern, but in the long term, these vulnerable sellers will outnumber them.
Bitcoin price will likely continue to rise 55 to 15 times with supply after each bonus block halved.
Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.