The world’s largest cryptocurrency, Bitcoin, is on a roll: since the start of the year, the value of the oldest cyber currency has tripled. And the end of the line has not yet been reached – one analyst believes that Bitcoin can still achieve a significantly larger price jump.
2020 was the year of the Bitcoin. In December, the cryptocurrency reached new record highs after a strong rally and surpassed the $24,000 mark for the first time. A milestone for many investors, who also had to ride out large fluctuations in the past. Will a period of volatility now follow again or can investors hope for a further price increase? One analyst is clear about this.
Bitcoin still has room to run
CNBC’s “Trading Nation” format featured JC O’Hara of MKM Partners, who predicted Bitcoin’s record rally in early November. Asked for his take on the current state of the market, he stated, “Two months ago we saw the first stages of uptrends in Bitcoin, and I believe we are still in the infancy of these new trends.” While bitcoin is currently at record levels, he sees room for further upside, the expert told CNBC.
The phase of the upward movement has just begun
To justify his confidence, the expert draws on historical developments. The last time when new phases of uptrend formation began was in 2015, he said. At that time, Bitcoin had cost $200 per coin and subsequently rose 8,000 percent to $19,000. “So we believe these trends will continue into the future,” O’Hara emphasized. Conservatively estimated, he sees bitcoin rising to US$25,000.
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Confidence also for the blockchain
But it’s not just bitcoin itself that’s on a roll at the moment; blockchain applications are also benefiting at the same time, Steve Chiavarone, portfolio manager at Federated Hermes, told CNBC. “From our perspective, it’s really, really exciting. It’s not necessarily Bitcoin itself, but the blockchain technology that underlies it. We believe this will become a driver of the digital revolution, along with AI and robotics, 5G and advanced biotechnology, and we believe it will make a whole range of financial and non-financial transactions more efficient, cheaper and safer,” he said.