The past month has been a frightening one for crypto investors around the globe. Bitcoin has, however, made a steady recovery in recent days after plunging from one of the biggest sell-offs in May. That begs the question: What comes next?
No one can tell for sure. A Bloomberg analyst thinks BTC will possibly go to $100,000 next, while some doomsday analysts are calling for a further plunge to as low as $19,000.
As bitcoin stays comfortably above $40,000, Jurrien Timmer, the director of Global Macro at multinational financial services corporation Fidelity Investments believes the bitcoin market bottom is now well behind us.
BTC Has Bottomed Out: Fidelity’s Jurrien Timmer
Bitcoin may have started 2020 strong but ever since it posted a high of around $65,000 in April, the dormant cryptocurrency has been a sluggard after Elon Musk’s Tesla bombshell. Bitcoin even dipped to as low as $29,700 before bouncing back above $30,000.
On Monday, BTC surged past $41,000 before retracing slightly to $40K following positive comments from Tesla’s Elon Musk and billionaire Paul Tudor Jones.
According to Timmer, bitcoin has bottomed out and unless hell freezes over, it won’t hunt new lows. “In my view, it looks like the bottom is in,” his tweet reads. This is good news for investors as it suggests it’s onward and upward for prices from here. He attached a chart that compares BTC and GS Retail favorites, showing that the two have similar local bottom patterns.
Fidelity has been striving to cement its clout in the crypto market in recent months. In late March, a Fidelity-affiliated fund, FD Funds Management, filed with the U.S. SEC to offer a bitcoin exchange-traded fund in the United States. The SEC started reviewing the application sometime last month.
Bitcoin’s latest move past the $40,000 resistance zone was accompanied by a mammoth exchange outflow. According to analytics company Santiment, the BTC exchange flow balance flashing negative on Monday was an insanely bullish signal for the flagship cryptocurrency.
Analysts are now eyeing a move to $50,000 in the near-term.
Meanwhile, a recent survey conducted by fund administrator Intertrust finds that hedge funds are planning to significantly increase their exposure to crypto-assets within the next five years, considering the sector’s long-term potential.
Intertrust surveyed 100 managers at leading hedge firms with over $7 billion in funds under management, The Financial Times reported on Tuesday. Per the results, the execs intend to hold at least 7.2% of their assets in cryptocurrencies by 2026.
Many institutional investors have been paying attention to cryptocurrencies, particularly bitcoin, over the past year or so owing to overwhelming fears of inflation amid unprecedented quantitative easing by central banks globally.
The Intertrust survey estimates that a staggering $312 billion from hedge funds could flow into the crypto markets within the next five years.
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