Bitcoin did not demonstrate the anticipated surge in value after the long-awaited halving event. However, a trusted analyst is confident that the prospects for the king of cryptocurrency are still bright.
According to trusted crypto analysts Weiss Crypto Ratings, Bitcoin will rise to new heights in the next one year. Weiss crypto believes things are going to be more exciting. The firm started in its official twitter handle:
“Long-term #BTC investors should look for weakness in this #crypto asset for entry points and hold on tight. The long-term outlook could scarcely look more exciting.”
The experts gave three reasons, in their view, that give BTC a positive forecast.
- Several countries have chosen a policy of quantitative easing. This means has caused the artificial emission of freshly printed fiat currency. Most people now see Bitcoin as an asset that can help them preserve value during a time of economic instability.
- Institutional investors are paying attention to Bitcoin cryptocurrency. For instance, Hedge Fund mogul Paul Tudor Jones only recently ploughed $120 million of his savings into Bitcoin. Similarly, Greyscale Bitcoin Trust is gathering up BTC so fast bitcoin miners are burning the midnight oil. Then there is Venture Capitalist Andreessen Horowitz who recently raised half a billion dollars to invest in crypto startups.
- As per statistics showed by the Stock-to-flow analysis (S2F), the prospect for Bitcoin is to reach at least $70,000 within the next 12 months. S2F works based on common sense that says the scarcer a commodity is, the more valuable it becomes. The model measures a commodity’s scarcity by matching production to the amount available for buying and selling (circulating supply).
According to Weiss Crypto Ratings, more institutional funds enter the Bitcoin ecosystem. At the same time, individual consumers may move from the weakening fiat system to a more reliable investment preservation tool. This will make bitcoin stronger and set itself up to overtake fiat and become the leady currency.
Demand for Cryptocurrency Grows
Bitcoin may not yet be the most stable asset to most people, but it has become more stable than some fiat currencies. The demand for cryptocurrency in several countries has grown during amid the growing Covid-19 pandemic. Bitcoin peer-to-peer trading volume has grown in Venezuela, Argentina, Lebanon and Chile to all-new-highs in the last few weeks. The CEO of analytics and finance management startup The Tie, Joshua Frank crowns it this way:
“Since the beginning of the year Bitcoin’s 30 day average tweet volume has increased by 16.5%.”