FX.co ★ Bitcoin: growth to six-figure price is a matter of time

On the chart of the main cryptocurrency, three key levels remain unchanged—the boundaries of the range 18,763–20,381 and the intermediate resistance 19,608.

For more than 12 trading sessions in a row, Bitcoin quotes do not go beyond the narrow sideways 18,763–19,608. Uncertainty about future prospects remains. At least in the short term, until one of the boundaries of the corridor 18,763–20,381 is broken.

But long-term forecasts, oddly enough, look very impressive.

McGlone: bitcoin's rise to six-figure price is a matter of time

Bloomberg senior analyst Mike McGlone said that the rise of the main cryptocurrency to six-figure prices is just a matter of time.

"So Bitcoin, I think it's only a matter of time until it appreciates towards that $100,000 level. And at some point, it's going to just slip in and kick into that bull market. The key thing right now is it's getting pounded, but it's the most discounted it's ever been on a 100-week and 200-week moving average and it's simple facts of supply-demand adoption looking forward to the next five or 10 years. Supply is going down by code. Demand and adoption are going up."

Last week, Nigel Green, the CEO of UAE-headquartered deVere Group, which is "one of the world's largest independent international financial consultancies," spoke about how serious long-term investors are taking advantage of the volatility in the crypto market.

He highlighted the fact that markets are now expecting policymakers at major central banks, including the US Federal Reserve and the Bank of England, to remain determined to raise interest rates in their fight to quell unexpectedly stubborn inflation. So the Fed is likely to raise rates by 75 basis points when they meet on November 1–2.

Also, members of the Monetary Policy Committee of the Bank of England are hinting quite clearly that they will seek a significant rate hike at the upcoming meeting on November 3.

"Given Bitcoin and Ether's current correlation with stock markets, we anticipate further, perhaps heightened, volatility in the crypto market before the end of 2022... However, for serious investors this will not necessarily be seen as a bad thing... The major investors, including institutional ones, will treat it in the same way as turbulence in any other market..."Some of the world's best investors consistently use market volatility as major buying opportunities in traditional financial markets – and the cryptocurrency market is now no different... When used effectively and efficiently, volatility can be an extremely powerful investment strategy... Savvy, long-term crypto investors will be looking to benefit from panic-sellers by buying their digital currencies 'on the cheap' to enhance their investment portfolios... Serious investors will not be spooked by further volatility. This isn't their first rodeo," emphasized Green.

Institutions are 'moving very, very fast' to cryptocurrencies

Meanwhile, Coinbase Senior Advisor John D'Agostino said that the institutional adoption of digital assets is moving quicker and much faster than the speed at which emerging industries typically develop.

In an October 18 interview, D'Agostino drew attention to how it often takes time to develop new asset classes, as "institutional inertia is a very real thing" and "there's a lot of switching costs associated with adding new assets."

But this did not happen with cryptocurrencies:

"So for me, for someone who spent 15 years trying to get commodities to be mainstream, it's actually moving fast. But I do understand why for somebody in the heat of the moment feels it's glacial. But for institutional I think it's moving very, very fast."

As for what may have slowed down institutional adoption, D'Agostino stressed that US regulators were "complacent" to the point that it hurt the "growth of technology".

But interestingly, D'Agostino considers the "bifurcated regulatory regime" between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) a "good thing" because "nobody fights over something that is going to go away."

"The fact that crypto is being used as a bargaining chip by the heads of regulatory agencies [and] the fact that these public announcements are being made to push a positioning around which regulatory agency will be in control is an indication that this is a vitally important piece of market structure."

D'Agostino was adamant that a cryptocurrency-linked exchange-traded fund (ETF) would eventually be approved despite repeated SEC rejections:

"I think that's going to change. Despite the delay, an ETF is inevitable. I can't tell you when it's going to happen. But I know at some point it's going to happen."

Also recently, the co-founder and CEO of Singapore-based cryptocurrency exchange Coinhako Yusho Liu stated that he expects institutional interest to continue to grow as the industry develops.

"We believe institutional flows into the market will continue to grow and serve as a crucial driver for future crypto innovation and adoption," he said.