Bitcoin has finally begun to cool down after an extremely strong rally in December and early January.
After peaking at $42,000 earlier this month, the cryptocurrency has settled toward $31,000, which is over 25 percent off those highs.
Analysts remain confident that this malaise won’t stop the trajectory of the market in the medium to long term, with investor Raoul Pal saying that $50,000 is not out of the cards for the leading cryptocurrency.
Bitcoin to hit $50,000?
Raoul Pal, a co-founder of Real Vision and a former Head of Hedge Fund Sales for Goldman Sachs in Europe, recently said that BTC could be targeting $50,000 next as the chart for the coin is starting to flip bullish.
Pal posted the tweet below just recently, in which he wrote that he thinks Bitcoin could hit $50,000 by March:
“Feels like BTC is getting ready to climb the wall of FUD fear. Positive seasonality and a nice wedge give it a good chance to hit $50k by March. Let’s see… I remain, as ever, #irresponsiblylong.”
Bloomberg themselves thinks that Bitcoin could hit $50,000 in the coming year.
Analyst Mike McGlone commented on the matter of BTC’s price trajectory:
“Crypto assets in 2021 are initially about the diminishing prospects for Bitcoin to revisit old highs around $20,000 vs. the increasing potential of staying a bullish course toward $50,000 and a market cap of about $1 trillion, the way we see it. Increasing regulation is part of maturation and is more likely to enhance the digital-gold attributes of Bitcoin vs. the other 8,000-or-so so-called cryptocurrencies, most of which are someone’s project and/or liability.”
One factor driving Bitcoin higher is the increased talks about inflation as the economy tries to get back on its feet.
With a Blue Wave in the U.S., the consensus is that there will be inflationary monetary policy that should drive the market into true inflation once everything returns to normal. BTC stands to benefit from this as a fixed-cap cryptocurrency that cannot be debased by a central bank or by a central authority.
Institutional bid is still here
There remains an institutional bid driving Bitcoin higher.
On Monday, Marathon Patent Group said that it has purchased $150 million worth of bitcoin. The purchase allowed the company to acquire 4,812 BTC, at an average price of $31,167.
This adds to the laundry list of institutional capital that has entered the crypto space recently.
Disclaimer: This author is an analyst at ParaFi Capital. ParaFi Capital may hold positions in assets mentioned in this article. The views displayed in this article are opinions of the author—and the author only.
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Source: Former Goldman Sachs exec Raoul Pal: Bitcoin price could hit ,000 by March