Speculation is starting to circulate that the price of bitcoin could reach $70,000.
The trend is back on an upward trajectory, seeing that since February 8th, the price has again surpassed $40,000 and risen to $50,000.
Moreover, just today it made a new all-time high of around $51,000.
At the moment, there are no clear signs of weakness, which is why there are few analysts who suspect that there is a risk of a significant retracement in the near future.
In particular, according to analyst Simon Peters of eToro, the fact that bitcoin is increasingly attracting multinationals could support a price rise to $70,000, which could even become the new normal for BTC.
Peters refers to financial giants, such as BNY Mellon and Mastercard, who have publicly announced their entry into the crypto sector, effectively backing bitcoin. This would highlight the significance that this sector is assuming within the global financial world, and the increased purchasing power of BTC, which could increase further as more big names jump on the bandwagon.
Peters said:
“Bitcoin’s rise in this 2021 does not seem to be stopping. The latest high touched shows how the cryptocurrency should now be considered a mainstream investment asset”.
Bitcoin at $70,000 is a sustainable level
When comparing the market cap of the entire crypto sector, at around $1.5 trillion, with that of the US stock market alone, at over $50 trillion, it becomes clear just how marginal a role crypto still plays in the global financial landscape, and what growth prospects it still has.
Peters adds:
“Bitcoin is disrupting the status quo and capitalizing on the dwindling strength of the dollar. With retail investors looking to hedge against inflation and institutions looking for solutions to help drive growth, there is no reason why $70,000 can’t soon become the new normal. Although, based on the performance shown in 2021, the crypto asset could potentially aim even higher”.
Thus Peters’ estimate of a $70,000 BTC does not refer to a hypothetical peak, but to a likely sustainable level, with perhaps even higher highs.
Indeed, it is worth adding that 2021 is the year after bitcoin’s third halving, and in both previous cases (2013 and 2017) there was a significant bull-run in the year after the halving, ending with a full-blown speculative bubble in the last two or three months of the year.
