Bitcoin (BTC), the world’s number one cryptocurrency by market cap, is exploding at the time of writing, and has shot up past the $8,800 mark.
Bitcoin Is Heading for Bigger and Better Heights
This, by itself, is a vast improvement over where the asset stood yesterday morning, which was $8,500. That means that bitcoin has improved by well over $300 in less than a day. Perhaps people like Sonny Singh of Bit Pay, Tim Draper, Ross Ulbricht and Charles Hoskinson all had a point to their mega-predictions this year.
All four men have predicted big things for bitcoin in 2020. Singh suggests that the currency is likely to hit the $20,000 mark by the time 2021 is ready to roll in, while the other three believe that bitcoin is going to hit some sort of six-figure range. Draper goes the highest, saying that bitcoin could reach $250,000 this year, while the other two – Ulbricht and Hoskinson – are a little more moderate in their predictions of $100,000, which at the end of the day, is still a solid figure for the world’s leading digital asset.
Bitcoin began the year on a bit of a crazy note, starting things out above the $7,000 line but falling to $6,900 the next day. However, bitcoin suddenly began surging on January 3 following a U.S. airstrike on Iran that killed one of the country’s leading generals. From there, bitcoin has been on a serious roll, likely due to the ongoing political tensions that are rising between east and west.
Naturally, analysts are putting in their two cents regarding why they think BTC is on fire as of late and where they think it will go. Tim Enneking, managing director of Digital Capital Management for example, is excited that bitcoin is undergoing a serious bull run, though he states a sudden surge might spell doom for the coin as it’s done in the past. The best way for bitcoin to move is slowly and steadily.
We think this is a continuation of the recent uptrend and a breakout of the short-term consolidation in a symmetrical triangle formation. We don’t expect it to explode, which would actually be a negative for trend continuation, but another consolidation prior to, perhaps, another measured move up.
Where Will It Go from Here?
John Todaro – director of digital currency research for Trade Block – also explained his thoughts, stating:
You had a technical set-up here over the past week indicating a continued short-term move higher… Several platforms launched options contract trading for the first time on bitcoin, today. In the after-hours markets occurring right now, spot traders are continuing to drive prices higher possibly in expectation of an increase in derivative buying activity throughout the week.
Should bitcoin continue its present surges, $9,000 is likely right around the corner.