Bitcoin recently bounced more than 50% from recent lows, so analysts say there may be deep corrections in the market soon. Many predict that it will trade at $ 20,000 amid a slew of negative headlines, after hitting record highs.
But currently, BTC is still gaining and is near another monthly high, continuing the rally that has been going on for four consecutive weeks. And looking at it closely, this is the fastest 21-day gain since February.
CoinShares Director Meltem Demirors said investors clearly view the recent regulatory scrutiny as something positive since it removes much of the confusion and uncertainty. This demonstrates that the crypto community is no longer an esoteric corner of finance.
So, even if China took a number of steps to restrict the mining of cryptocurrency and US refocused their attention on digital assets, demand on the market is still high.
In fact, Bloomberg strategist Mike McGlone said there is a possibility that Bitcoin will hit $ 100,000.
Tom Lee from Fundstrat said the same, estimating that the cryptocurrency will trade around $ 100,000 by the end of 2021. He explained that if Bitcoin is above the 200 MA, then investors should open buy positions.
So far, BTC is trading above $ 46,000 despite potential tax reporting requirements. The proposed change in cryptocurrency reporting rules in the Congressional infrastructure bill was blocked in the Senate on Monday, so the wording on the legislation remained the same.
And even if there was a slight decrease on Tuesday, Kristin Smith of the Blockchain Association said she was surprised by the coin's advancement amid negotiations on the infrastructure bill.
But CIBC CIO David Donabedian said it was not a surprise because driving factors are dynamics and cash flows, as well as a small share of the overall attitude to risk and risk aversion in the markets.