Bitcoin, the king of cryptocurrencies, is currently in the early stages of a new bull market, according to a crypto strategist, who accurately predicted BTC’s floor price last year. Despite breaking out from a multi-month reversal pattern, many traders still believe that Bitcoin is in a downtrend. The pseudonymous analyst known as DonAlt took to Twitter and said that all he sees is disbelief among traders. The negative funding rates in various crypto exchanges indicate that traders are still betting on BTC to go down. DonAlt argues that a disbelief rally is underway, which traditionally happens in the beginning of a bull market when traders conditioned by the previous bear market still expect prices to eventually go lower.
Many traders are still skeptical and unsure about Bitcoin’s future. DonAlt, however, is mapping out BTC’s worst-case and best-case scenarios, stating that in both scenarios, Bitcoin just goes up. DonAlt believes that the high time frame breakout of BTC could propel the king crypto to as high as $100,000.
At the time of writing, Bitcoin is trading for $27,570. DonAlt suggests a “Greed entry” at the current price of Bitcoin and a “Not so greedy entry” at a price of $25,606. DonAlt’s targets are $36,000, $60,000, and $100,000, respectively.
The global pandemic has caused a lot of uncertainty and insecurity in the markets. Governments’ monetary policies and economic stimulus packages have caused a lot of concern, and all these factors have led to an increase in demand for Bitcoin. As a decentralized currency that cannot be manipulated, Bitcoin is seen as a hedge against inflation and an alternative to traditional assets such as gold.
More people are buying Bitcoin not just to hodl but also to use as a payment method. PayPal’s recent announcement to allow users to buy, sell, and hold cryptocurrencies has been a game-changer for the crypto industry. PayPal’s announcement is expected to introduce millions of people to cryptocurrencies and makes it easier for everyone to access this digital asset class.
PayPal is not the only company that is embracing cryptocurrency. Other companies such as Visa, Mastercard, and Square have also been taking steps towards adopting cryptocurrencies. According to a recent report by Messari, the total value of crypto assets under management in traditional finance has reached $9 billion.
The adoption of cryptocurrencies by companies and institutions is a sign of a growing acceptance of cryptocurrencies as a legitimate asset class. This level of institutional adoption is a clear indication that cryptocurrencies are no longer just a speculative asset but a necessary component of any diversified investment portfolio.
Apart from institutional investors, the crypto market has also attracted a lot of retail investors. With the rise of decentralized finance (DeFi), crypto enthusiasts can now lend, borrow, and earn interest without the need for a traditional financial institution. DeFi brings traditional financial services to the blockchain and provides a transparent, permissionless, and decentralized platform for financial transactions.
The crypto market is still volatile, and investors need to approach it with caution. Despite the current positive outlook, Bitcoin’s price can still drop unexpectedly, and investors should only put in what they can afford to lose. However, with the growing adoption of cryptocurrencies by businesses and institutions, the crypto market is set for a more stable and promising future.
