Bitcoin bulls see $ 100,000 price target in sight despite drubbing Crypto News

Bitcoin is slowing down this week while the Federal Reserve is ready to remove the stimulus, but the bulls are feeling as enthusiastic as ever.

The largest cryptocurrency in terms of market value has plunged about $ 80 billion since the beginning of the year, amid a decline that has taken it to its lowest levels since the crash in early December. But at some point this year, they have announced that it could reach $ 100,000.

It would take more than double the current level of about $ 42,900 to reach that milestone. Analysts say it’s not possible – it has posted a triple-digit annual profit over the past decade – but it could be a more difficult path for cryptocurrencies with a more insidious Fed.

“Cryptocurrencies have benefited from the Fed’s massive liquidity injections since 2020,” said Matt Maley, Miller Tabak + Co’s chief market strategist, “He pushed these assets too far, too fast.”

Along with the most risky assets such as U.S. equities, Bitcoin and other digital assets fell on Wednesday after minutes of a recent Fed meeting showed officials were ready to remove the stimulus sooner than many expected.

The central bank noted earlier and faster rate hikes, which would increase the cost of capital across the economy. This has the potential to distract investors from cryptocurrencies, many of which have made big gains in the last two years, amid great stimulus.

But not everyone agrees that this environment is bad for cryptography. Bitcoin is a risky asset in a world that is becoming a digital reserve asset, which is having a positive impact on its price, according to Mike McGlone of Bloomberg Intelligence.

The coin “goes to $ 100,000,” he wrote in a statement. “Crypto is high among risky and speculative. If risk assets fall, it helps the Fed fight inflation. By becoming a global reserve asset, Bitcoin could be the main beneficiary in that scenario.”

However, that hasn’t stopped other industry players, such as Messari Inc. co-founder Ryan Selkis, from laughing at the basics of some heavenly predictions.

My price targets for BTC and ETH are $ 100,000 and $ 10,000 in May.

I reached those goals yesterday by looking at the charts, and writing the numbers I wanted to hit the markets for spring.

– Ryan Selkis @ ???????? (@twobitidiot) January 6, 2022

And earlier this week, Goldman Sachs analyst Zach Pandl wrote that Bitcoin could make $ 100,000 if it continues to gain market share before then.

Bitcoin has recently been singing the stock market tune, with a 100-day correlation coefficient of the currency and the S&P 500 at 0.44. This is the highest reading since the fourth quarter of 2020. A coefficient of 1 would mean that the assets are moving in step, and minus-1 would indicate that they are moving in opposite directions.

“Now that this stimulus is going to be more rapid than the markets thought it would be, it makes sense to put those assets together,” Maley said.

Lindsey Bell, Ally’s chief market and money strategist, says investors were already nervous about entering the year, thanks to uncertainty about the Fed’s policy path.

“The risk that people want to take is being re-evaluated,” he said over the phone. It doesn’t help that the dollar has strengthened, reminding crypto-investors that “it’s still the world’s currency and it’s still very strong and it’s not going anywhere, so you don’t have to hide your money under the mattress or in the currency.” .

Greg Bassuk, CEO of AXS Investments, an asset manager based on alternative investments, says Bitcoin should be part of an investor’s portfolio.

“We’re very good at cutting all the noise with Bitcoin and digital assets, every day,” he said in an interview. “Digital assets will be treated for a longer period of time in the coming years like commodities, stocks and bonds, real estate and other traditional asset classes.”

“With the help of Lu Wang.”