Where will the BTC price move?

A few months ago, the idea that Bitcoin would surpass its all-time high (ATH) wasn’t particularly outlandish. The benchmark was set three years earlier, and since then, much has happened to strengthen investors’ faith in the asset over the intervening period.

“Pandemic pumping”

Of course, few people could have imagined that the main cryptocurrency would reach $ 20,000 and then exceed $ 30,000 without stopping to rest, and no less than by the 12th anniversary of the genesis block. A week later, the price reached 40 thousand dollars. Nothing seemed to be the same.

So, what’s next?

Bitcoin’s progress in the early days of 2021 has caused a stir around the world, with more institutional players than ever eager to get involved. The BTC is no longer a shadow asset that big hedge funds and asset managers shy away from, and as central banks print money at an incredible rate to fight the pandemic and its aftermath, its status as a haven from inflation is being actively investigated.

According to data compiled by Glassnode, the number of cryptocurrency wallets holding more than 1,000 BTC ($32.6 million) has grown to an all-time high, a sure sign that wealthy institutional investors are recognizing the asset’s credentials as a means of saving.

Although the price of Bitcoin fell from $ 42,000, the drop was not quite sharp, and consolidation occurred. Moreover, it is difficult to view the long-term outlook otherwise than optimistically, given the improvements made to the network’s fundamentals and the capital inflows from the professional class of investors. Cryptocurrency has reached a cultural tipping point.

At the moment, according to CoinMarketRate, Bitcoin’s market capitalization of $ 592 billion makes it larger than almost any publicly traded bank in the world. Let’s not forget that 2020 was the year of the pandemic: in this light, the rapid growth of the MTC looks even more impressive.

Institutional players join the game

Asset management giant BlackRock is reportedly considering investing in cash-settled Bitcoin futures trading. The world’s largest asset manager controls more than $ 7.8 trillion, including about $ 235 billion. in the form of “alternative investments”. Derivatives may well act as a gateway to the cryptocurrency market. But what happens when they enter the market?

Speaking of futures, total open market interest hit a record high on January 14, surpassing $ 13 billion for the first time. According to Bybit’s Week 3 Recap:

“The surge in open interest suggests an increase in speculative interest in the next direction of Bitcoin.”

While it’s hard to say how much capital BlackRock can commit to Bitcoin futures, other major investors are quite outspoken on the matter.

Hedge fund manager billionaire Paul Tudor Jones, who says that Bitcoin reminds him of the gold of the 1970s (his fellow billionaire Stanley Druckenmiller agrees), has allocated 1-2% of his portfolio to cryptocurrency.

Where to move next?

As for long-term price forecasts, it certainly depends on who you ask. In a recent note, JPMorgan laid out an optimistic case, saying that the crypto king could grow to $ 146,000, competing with gold as an alternative currency. Bloomberg strategist Mike McGlone is even more optimistic, putting the mark at $ 170,000.

Given that $ 30K is seen as a key psychological support level, it will be interesting to see if the price goes down, or if the bulls are going back towards $40K. In any case, the vast majority of BTC holders are not going to sell it.