Is $US10,000 the new normal for Bitcoin?
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After an ugly start to the year for Bitcoin — it hit as low as $US3,436 ($5,099) in early February — the market has turned right around, running back into five figures for the first time since early 2018.
And while we have seen time and time again stocks, commodities and currencies crash from a bubble, one expert believes $US10,000 is the “new normal bottom”.
He also reckons it could soon jump to new all-time highs of $US15,000.
Bitcoin’s record high is just shy of $US20,000, which it hit in late 2018, but over the ensuing couple of months it lost 83 per cent of its value.
It has however since regained the bulk of that, and has regularly traded above the $US10,000 mark for the past three months.
Nigel Green, CEO of financial advisor deVere Group, says investors should not worry about future fluctuations.
“Looking at its performance this year, I believe that the new normal bottom price for Bitcoin is $US10,000,” he says.
“It bounces at this price. If it fluctuates below this level, it shoots back up again. We have seen this in action on Monday when Bitcoin hit $10,500 in a matter of minutes.”
(On Monday, Bitcoin fell to $US9,991; an hour-and-a-half later it had rocketed back up to $US10,560.)
Green reckons there is plenty of further upside for the cryptocurrency as well, predicting it will soon exceed its record highs by more than 8 per cent.
“Bitcoin can be expected to imminently reach $15,000 for four main reasons,” he says, naming geopolitical issues, technical network improvements, next year’s Bitcoin halving and increased awareness of cryptocurrency — a theme that other experts have attributed to the digital currency’s recovery this year.
“There is increasing global acceptance that cryptocurrencies, such as Bitcoin, are not only the future of money, but increasingly the money of today. This will be reflected in Bitcoin’s new normal bottom price of $10,000,” Green says.
Henrik Andersson, CIO at Apollo Capital, is more circumspect.
“I believe the current range is US$9,000-12,000,” he tells Stockhead. “There is a good chance of a breakout of that range later in the year as the Bitcoin halving event start being priced in.”