Bitcoin Attractive In Both Short And Long Term

Traditional markets jumped last Monday following a fresh wave of positive newsflow around coronavirus vaccine developments, with both the FTSE 100 and Dow Jones Industrial Average jumping 1.6% on the announcement. Positive sentiment about the efficacy of these vaccines, touted at 95% for both the Pfizer (PFE) and Moderna (MRNA) treatments, continued throughout the week. 

Bitcoin (BITCOMP) also had a positive week, touching and surpassing the $18,000 level in multiple instances. 

Bitcoin attractive in both short and long term - Simon Peters, analyst, eToro

If you had said to me just a few weeks ago that we would soon be in touching distance of $20,000 – bitcoin’s all-time high – I may have voiced some doubts. Yet here we are, hovering around the $18,000 level, just $2,000 away from that legendary $20k mark. That’s a movement that could easily occur in just a few hours. 

Therefore, it is not out of the question that we could see a new all-time high before 2021. My bullishness hasn’t changed in terms of where I see bitcoin going in the long term, but I am conscious of momentum and would warn that the market does look a touch overbought right now. It is possible that at $20,000 we could see some investors take profits (or if they bought in 2017, cut losses and break even) and this could see the price of bitcoin enter a short period of consolidation. Given that the on-chain unrealised profit/loss data currently shows that the majority of bitcoin addresses are in profit, it’s not audacious to expect some selling at $20,000 or even slightly before. 

I highlighted in comments last week that ‘this time is different’ and I’m still of that opinion, which is why I see bitcoin as a good long-term investment opportunity. The institutional investment coming into crypto, not just from hedge funds, HNWI and family offices but from pension funds too, is a long-term tailwind that will continue irrespective of the short- to medium-term bitcoin price fluctuations. 

1 2 3
View single page >> |

Disclaimer: This article should not be taken as investment advice, personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.