Bitcoin starts to go bear? Long: Don’t panic! Expected to rise to $ 250,000 within a year

Investors should remember that cryptocurrencies always come with a correction

Bitcoin starts to go bear? Long: Don't panic! Expected to rise to $ 250,000 within a year

Over the past month, bitcoin has fallen more than 30% under the weight of a series of negative factors. Some market participants are starting to worry if Bitcoin, which has been on a tear for the past year, is about to start going downhill. At least according to Raoul Pal, former Goldman Sachs hedge fund manager and CEO of Global Macro Investor, that is far from the case.

The entire cryptocurrency market had a “huge shock” on Wednesday (May 19) as funds fled in fear due to the regulatory news. As of 1:18 p.m. BST, the total market value of global cryptocurrencies evaporated by about $279.65 billion in 24 hours.

Bitcoin’s price is currently at $40,329, down more than 10% in 24 hours. It previously fell below $40,000 for the first time since Feb. 8, retreating about $25,000 from its all-time high of $64,829. Last week, Tesla announced that it was suspending bitcoin purchases due to energy consumption concerns, sending the cryptocurrency into a “head-on collision”.

In a phone interview, Parr encouraged investors to hang in there as the cryptocurrency market is on edge, saying he sees a huge catalyst for bitcoin this year, with a rise to $250,000 within a year. “I think bitcoin will go over $250,000 and ethereum will go over $20,000 in the next 12 months,” he claimed.

Ether, the world’s second-largest cryptocurrency after bitcoin, is currently down below $3,000, more than 30 percent below its all-time high of $4,382 set last week.

Parr noted that investors should remember that cryptocurrencies always come with a correction, “If you understand Bitcoin, you understand its volatility, and you know that a 35% pullback is normal. (Bitcoin) is still generating 200% annualized returns, which is the highest return ever recorded for any asset in history.”

While returns may be declining over time, “the adoption rate across the cryptocurrency market is still growing at 113% per year, which is twice the rate of the Internet from 1990 to 2000. So that’s the fastest rate at which any technology has been adopted in history.”

Another reason why investors should stick around, according to Parr, is that the long-awaited U.S. exchange-traded fund (ETF) will provide the “fuel” for the rise in digital assets. He expects the bitcoin ETF to be approved in September. Once that happens, new demand from RIAs (registered investment advisors) and asset managers will spur a rise in the overall crypto market.

Mike Novogratz, CEO of Galaxy digital and a cryptocurrency investor, also said Monday that bitcoin will consolidate for the next four to six weeks, with the price staying between $40,000 and $50,000. However, he also pointed out that even with the recent drop, bitcoin should still move higher throughout the year. He noted that the U.S. Securities and Exchange Commission could approve a bitcoin ETF by the end of this year or early next year, which is the next catalyst.

Posted by:CoinYuppie,Reprinted with attribution to:
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