Bitcoin’s price has been on a tear lately, most recently pushing over $90,000 for the first time in over a month. Investors are trying to figure out what to do in a world with more volatile stocks and a weakening dollar. This environment could be contributing to the increasing attractiveness of Bitcoin as a safe haven asset. Though still 20 percent below its pre-inauguration high of $107,000, Bitcoin’s recent trajectory represents something of a confidence trick rebirth for the world’s leading cryptocurrency. Market analysts, strategists, and investors all are watching Bitcoin’s every move. They would like to see it hold on to its recent strength and breakout of its well-established range.
Bitcoin prices have indeed been experiencing a significant blowout surge. The other big news Tuesday was Bitcoin officially taking out above the old highs at over $90,000 after a long period of consolidation. With the current price above this important level, speculation about additional upside has been reignited.
This recent turn of market dynamics is the key factor at play that’s fueling Bitcoin’s current rebound. Investors are looking for new places to put their money due to volatility in traditional stock markets and an increasingly worthless dollar. Bitcoin’s main claims to fame are that it is decentralized and has a fixed supply. This has given it an attractive option for those looking to protect their capital.
While Bitcoin has seen unbelievable overall growth, analysts say that a few separate factors stand to push Bitcoin even higher. Larry Tentarelli, chief technical strategist for Blue Chip Daily Trend Report, suggests that a sustained break above $90,000 could trigger a significant rally. A strong conviction of Christopher McMahon, CEO, Aquinas Wealth Advisors. He believes that with the right crypto-friendly administration in office, Bitcoin might just reach $130,000 this year.
Additionally, some experts think that political factors are playing a role in the political price of Bitcoin. In the meantime, Trump’s incessant public undermining of Federal Reserve Chair Jerome Powell is adding volatility to the wider market.
"If Trump were to be successful in removing Powell, and putting in place a more ‘dovish’ chairman, this could be viewed as a positive for cryptocurrencies as Bitcoin and alt coins have historically done better in lower interest rate environments" - Brett Knoblauch
This surge in volatility has been oddly enough working out in Bitcoin’s favor, as investors are moving into safer haven assets.
Bitcoin has been coming off all-time highs, trading in a range of around $75,000 to $90,000. That period of price consolidation indicates a time of accumulation just prior to the quick move up. If Bitcoin can maintain its momentum and overcome resistance levels, it could signal a new phase of growth for the cryptocurrency.
