π₯ The Upward Trend of Bitcoin Likely to Continue in the Coming Months π₯
Bitcoin has finally broken through the $57,000 threshold, marking an all-time high since November 2021. This surge is attributed to several catalysts, including MicroStrategy’s significant $155 million investment in Bitcoin, bitcoin miners, and crypto exchanges like Coinbase and Robin Hood. It is no wonder that Bitcoin bulls expect more upside in the coming months.
In this article, you will hear from Owen Lao, Oppenheimer’s executive director and senior analyst, about his thoughts on Bitcoin’s upward trend. He also sheds light on Bitcoin ETFs’ impact, bullish catalysts, Bitcoin’s correlation with equities, and its potential as a hedge against inflation.
π€ MicroStrategy’s $155 Million Investment in Bitcoin: The Catalyst for Bitcoin’s Surge?
The news of MicroStrategy buying 3,000 bitcoins for $155 million was one reason Bitcoin broke through the $52,000 range, Owen said. Going into April and possibly May, the Bitcoin having and further adoption from spot Bitcoin ETF could continue to be catalysts. Owning to the trend, the analyst says it is good to know that more and more new money is coming into the digital asset investment space.
π§ Will New Money Continue to Flow into Bitcoin Investment Products?
Most of these new funds come from institutional investors, Owen says. Retail investors have access to platforms such as Coinbase and Robinhood, so some money could come from them but the backdrop is dominated by institutional investments. However, many financial advisors and RIA are still undergoing due diligence. When they finish and change their policies towards the digital asset space, more funds could potentially come into the sector.
π° Bitcoin as a Digital Hedge Against Inflation?
It is hard to track Bitcoin’s correlation with equities, Owen says. The digital currency has a bit of everything going for it, from being a hedge to digital gold and an inflation hedge. What remains true is that the cryptocurrency can benefit from high-tech companies coming down and going up as it has a high beta feature that offers investors an exciting profit opportunity.
πΈ BTC’s Price Forecast: Is Bitcoin on a Bullish Trend for Good?
Owen says there are no predictions or targets regarding Bitcoin trends. However, the catalysts we may see, including an Ether ETF in May and a Fed rate cut expected in 2H 2021, are significant enough to potentially support Bitcoin’s upward trend. However, he warns that Bitcoin has already hiked significantly and selling some new event in April could result in some sell-offs.
π A Different Rally This Time?
Owen feels that this rally is somewhat different from the last, considering there is less retail participation than what was evident in 2020. This leaves room for continued bullish trends, and he is optimistic about the digital assets investment space’s prospects.
π₯Hot Take π₯
Bitcoin’s ongoing upward trend is prompting many institutional investors to move funds into the digital assets investment space. The catalyst for this increase is partly due to MicroStrategy’s $155 million investment in Bitcoin, and there are more bullish trends expected in the coming months. While some retail investors continue to participate in the cryptocurrency space, institutional investors remain the primary drivers of its upward trajectory. As Bitcoin continues to offer investors an exciting profit opportunity, market experts warn that sell-offs could occur if investors react to new events in the space without caution.
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