Bitcoin
1 Cryptocurrency to Buy Before It Surges 150% in the Second Half of the Year, According to Two Wall Street Analysts
Another major upward move could be in the cards for this popular cryptocurrency.
The cryptocurrency market is notoriously volatile. This can lead to some impressive drops in value, but it can also produce some incredible returns in a short space of time.
Bitcoin (BTC -6.55%) hit a new all-time high earlier this year amid the fervor of new spot prices Bitcoin ETFs hitting the market. The largest cryptocurrency on the market has seen its value increase 177% from its October lows to its March high of $73,750. It has since retreated to around $60,000 per Bitcoin at the time of writing.
Two Wall Street analysts think Bitcoin could be poised for another price surge in the next six months, reaching $150,000 by the end of 2024, a 150% increase. Fundstrat’s Tom Lee and Standard Chartered’s Geoff Kendrick expect the cryptocurrency to surpass its all-time highs later this year.
Image source: Getty Images.
Bitcoin’s latest challenge is almost behind us
The price of Bitcoin is primarily determined by supply and demand. Earlier this year, the Bitcoin Halving has slowed the rate at which the cryptocurrency’s supply is increasing. Previous halvings have been bullish for Bitcoin, as demand growth outpaces supply growth. However, another large supply influx remains a challenge for Bitcoin’s price.
Just days after the most recent Bitcoin halving, defunct Bitcoin exchange Mt. Gox, which filed for bankruptcy protection in 2014, has delivered some good news for creditors. Mt. Gox was once the largest Bitcoin exchange in the world, but suffered a devastating hack in 2014, resulting in the loss of over 850,000 Bitcoin. In April, Mt. Gox’s administrator said it would begin returning some of the lost funds by October.
In late June, the trustee announced plans to begin disbursements in July. Two years ago, the Mt. Gox trustee held 142,000 Bitcoin, worth over $8.5 billion at today’s prices. If the creditors who received their Bitcoins decide to sell, it could put massive downward pressure on the price of Bitcoin. This potential selling pressure has been baked into the price of Bitcoin in recent months.
But demand for Bitcoin is largely based on future expectations. And the Mt. Gox deal is almost over. Lee says that’s a reason to invest in Bitcoin now. “This has been a huge glut for many years,” he said in an interview with CNBC. “But if I were investing in crypto, knowing that one of the biggest gluts is going to disappear in July, I think that’s a reason to actually expect a pretty sharp recovery in the second half of the year.” He says $150,000 per Bitcoin is still possible by the end of the year.
Kendrick believes that macro events like the US election could play a significant role in Bitcoin’s price later this year. He sees a scenario where the cryptocurrency hits $100,000 on Election Day and $150,000 by the end of the year.
This Major Source of Demand Will Drive Bitcoin Higher
The biggest potential driver of Bitcoin’s long-term price appreciation is the asset’s growing adoption in institutional portfolios.
New spot Bitcoin ETFs approved in January will usher in a new, easier way to institutional investors to invest in cryptocurrency. Many hedge fund managers jumped at the opportunity. They had $4.2 billion invested in the Grayscale Bitcoin Background (GBTC -6.54%) and another 3.2 billion dollars in the iShares Bitcoin Investment Fund (I BITE -6.50%), through the end of the first quarter, according to SEC filings.
Inflows into Bitcoin ETFs slowed in the second quarter, but the potential for broader adoption among institutional investors remains. Cathie Wood’s Ark Invest expects Bitcoin to play a larger role in institutional investors’ portfolios in the future. The analysts estimate that a 1% allocation of investable assets to Bitcoin will push the cryptocurrency’s price to $120,000, but they see potential for a much larger allocation.
As more institutions increase demand and supply growth continues to slow, there’s plenty of room for Bitcoin’s price to rise. Whether it will hit $150,000 by the end of the year is hard to say. But the cryptocurrency has a history of making big moves in a short space of time. If you’re bullish on Bitcoin, the best time to invest is now.
Adam Levy has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.
Bitcoin
Bitcoin (BTC), Stocks Bleed as China’s Surprise Rate Cut Signals Panic, Treasury Yield Curve Steepens
Risk assets fell on Thursday as China’s second rate cut in a week raised concerns of instability in the world’s second-largest economy.
Bitcoin (BTC)the leading cryptocurrency by market cap, is down nearly 2% since midnight UTC to around $64,000 and ether (ETH) fell more than 5%, dragging the broader altcoin market lower. The CoinDesk 20 Index (CD20), a measure of the broader cryptocurrency market, lost 4.6% in 24 hours.
In equity markets, Germany’s DAX, France’s CAC and the euro zone’s Euro Stoxx 50 all fell more than 1.5%, and futures linked to the tech-heavy Nasdaq 100 were down slightly after the index’s 3% drop on Wednesday, according to the data source. Investing.com.
On Thursday morning, the People’s Bank of China (PBoC) announced a surprise, cut outside the schedule in its one-year medium-term lending rate to 2.3% from 2.5%, injecting 200 billion yuan ($27.5 billion) of liquidity into the market. That is the biggest reduction since 2020.
The movement, together with similar reductions in other lending rates earlier this week shows the urgency among policymakers to sustain growth after their recent third plenary offered little hope of a boost. Data released earlier this month showed China’s economy expanded 4.7% in the second quarter at an annualized pace, much weaker than the 5.1% estimated and slower than the 5.3% in the first quarter.
“Equity futures are flat after yesterday’s bloody session that shook sentiment across asset classes,” Ilan Solot, senior global strategist at Marex Solutions, said in a note shared with CoinDesk. “The PBoC’s decision to cut rates in a surprise move has only added to the sense of panic.” Marex Solutions, a division of global financial platform Marex, specializes in creating and distributing custom derivatives products and issuing structured products tied to cryptocurrencies.
Solot noted the continued “steepening of the US Treasury yield curve” as a threat to risk assets including cryptocurrencies, echoing CoinDesk Reports since the beginning of this month.
The yield curve steepens when the difference between longer-duration and shorter-duration bond yields widens. This month, the spread between 10-year and two-year Treasury yields widened by 20 basis points to -0.12 basis points (bps), mainly due to stickier 10-year yields.
“For me, the biggest concern is the shape of the US yield curve, which continues to steepen. The 2- and 10-year curve is not only -12 bps inverted, compared to -50 bps last month. The recent moves have been led by the rise in back-end [10y] yields and lower-than-expected decline in yields,” Solot said.
That’s a sign that markets expect the Fed to cut rates but see tighter inflation and expansionary fiscal policy as growing risks, Solot said.
Low liquidity, regulatory uncertainty and speculative behavior contribute to inefficiency in crypto markets. But systematic approaches, including momentum indices, can reduce risks for investors, says Gregory Mall, head of investment solutions at AMINA Bank.
Low liquidity, regulatory uncertainty and speculative behavior contribute to inefficiency in crypto markets. But systematic approaches, including momentum indices, can reduce risks for investors, says Gregory Mall, head of investment solutions at AMINA Bank.
Low liquidity, regulatory uncertainty and speculative behavior contribute to inefficiency in crypto markets. But systematic approaches, including momentum indices, can reduce risks for investors, says Gregory Mall, head of investment solutions at AMINA Bank.
July 24, 2024, 5:30 p.m.
Updated July 24, 2024, 5:35 p.m.
(Benjamin Cheng/Unsplash)
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Bitcoin
India to Release Crypto Policy Position by September After Consultations with Stakeholders: Report
“The policy position is how one consults with relevant stakeholders, so it’s to go out in public and say here’s a discussion paper, these are the issues and then stakeholders will give their views,” said Seth, who is the Secretary for Economic Affairs. “A cross-ministerial group is currently looking at a broader policy on cryptocurrencies. We hope to release the discussion paper before September.”
Ether, the second-largest token, fueled a slide in digital assets after a stock rout spread unease across global markets.
Ether fell about 6%, the most in three weeks, and was trading at $3,188 as of 6:45 a.m. Thursday in London. Market leader Bitcoin fell about 3% to $64,260.
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