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The Bitcoin market is like a roller coaster! "Wood Sister" latest prediction: Bitcoin may reach $3.8 million.
Recently, the Bitcoin market has been more exciting than a roller coaster ride. On January 23rd, the price of Bitcoin flash crashed, dropping below the $39,000 mark. By mid-February, Bitcoin surged past $50,000. From then on, the price of Bitcoin kept rising, reaching over $70,000 on March 8th, followed by several new all-time highs, with the highest touching nearly $74,000 on March 13th.
However, on March 17th, the Bitcoin market saw a reversal, dipping below the $65,000 mark, with the largest intraday drop exceeding 6%. The decline continued, and on March 20th, the price of Bitcoin plummeted, dropping below $62,000. Due to expectations of a Fed rate cut, the crypto market rebounded significantly, with Bitcoin briefly surpassing $68,000 on March 21st, rising over 6.8% intraday.
Zhao Wei, a senior researcher at OKEx Research Institute, analyzed that with Bitcoin hitting a new high for the year, the short-term market is overheated, with a significant increase in leverage, leading to a noticeable increase in risk appetite among some investors. It is not ruled out that some profit-taking by investors may lead to a downturn in the market, further exacerbating panic selling by some investors.
—— Global Number of Cryptocurrencies
Currently, various cryptocurrencies and digital currencies are emerging globally, with many cryptocurrencies being established by non-financial institutions, issuing and trading on the blockchain with independent trading prices. According to Finbold data, in 2020, the global number of cryptocurrencies was only 8,000+. By 2021, it directly exceeded 16,000, an increase of 98.98% year-on-year.
—— Bitcoin Generation Principle
Bitcoin is a digital currency with a constant total supply of 21 million, sharing characteristics with the internet such as decentralization, globalization, and anonymity. The operation of Bitcoin relies on two core concepts: nodes and decentralized ledgers. Each computer with a Bitcoin client is called a node, and each node is equal, with no central node. The network formed by countless such computers is a decentralized ledger.
—— Panorama of the Bitcoin Industry Chain
From the perspective of the industry chain, the upstream link of the Bitcoin industry chain is Bitcoin production hardware and technical support, including mining pools, mining farms, and mining machine manufacturing. General technologies include blockchain technology, distributed computing, and distributed storage. The midstream link is the Bitcoin trading circulation link, involving Bitcoin exchanges, as well as related Bitcoin transfers, exchanges, and cashout. The downstream link is the Bitcoin payment application and corresponding service support. In some countries, Bitcoin can be circulated as real currency, leading to the emergence of facilities such as Bitcoin ATMs; Bitcoin service support mainly includes Bitcoin storage, Bitcoin malls, and Bitcoin communities.
Former Chief Equity Strategist at JPMorgan, Tom Lee, said that Bitcoin will soon reach $82,000, and by the end of 2024, it may even reach $150,000.
Cathie Wood, the star fund manager of Wall Street and CEO of Ark Investment Management, said at a Bitcoin Investor Day event in New York on Friday that in a bull market scenario, the price of Bitcoin could reach $3.8 million, more than $2 million higher than her previous prediction. Last year, we predicted that in a bull market scenario, Bitcoin would reach $1.5 million. The SEC gave the green light to institutions, albeit reluctantly, but our analysis shows that over time, if institutional investors allocate a little over 5% of their investment portfolio to Bitcoin, as we believe, this alone will increase the forecast I just gave you by $2.3 million. |
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Post time 7-4-2024 17:21:18