FX.co ★ Bitcoin bound to fly despite serious headwinds

The mid-spring inspires crypto optimists to update their bullish forecasts for the whole crypto market and bitcoin in particular. Some experts foresee the rosy future of the flagship digital currency. According to the most optimistic forecasts, they dare to project the spectacular high of $5 million per token that bitcoin will conquer someday.

Analysts have never predicted such sky-high prices. Importantly, the number one cryptocurrency will zoom up to this peak on one condition. Bitcoin has to be acknowledged as being the world’s reserve currency of a new age. Experts say that if such a scenario comes true, BTC price could surge to the range of $1.3 million to $4.8 million per token. Even without such worldwide recognition, the crypto could become a viable alternative to gold. No doubt, some analysts are more cautious in their forecasts. Some of them believe that the crypto market will remain stagnant for another couple of years. Bitcoin is expected to rally not until late 2024 – early 2025. Crypto realists point out that bullish and bearish cycles of digital assets are driven by halving. The halving process slashes the rewards that miners gain for verifying transactions. As a result, tokens are generated at a slower speed and miners are able to issue twice fewer new coins. The halving event is launched once every 4 years. The latest one took place in May 2020. Last year, BTC price topped the historical high of $68,000 per token.

Finally, pessimists warn about the coming crypto winter. From their viewpoint, the market could replay the same situation as in 2017 and 2018 when bitcoin plummeted by 80% from previous historic peaks.