Bitcoin could hit US$400k if past gains are replicated, analysts say

Bitcoin could hit US$400k if past gains are replicated, analysts say

Bitcoin could hit US$400k if past gains are replicated, analysts say

If runaway cryptocurrency Bitcoin were to mirror its outrageous climbs in past years it could reach as high as US$400,000, analysts have modelled.

A new report by Bloomberg Intelligence theorises if Bitcoin could replicate its highs in 2013 (roughly 55x gain) and 2015 (roughly 15x gain), it would peak at several hundred thousand dollars.

Of course, like any investment, past performance is not an indicator of future gain but analysts believe Bitcoin’s trajectory is “strongly upward”.

 

The technical outlook for Bitcoin in 2021 remains strongly upward, if past patterns repeat. Common companions for strong annual rallies in the first-born crypto – low volatility and halvings – are aligned favourably,” the authors of the Bloomberg Crypto Outlook 2021 write.

READ  Police Rescue Kidnap Victim, Arrest Drug Dealer In Delta

“To reach price extremes akin to those years in 2021, the crypto would approach $400,000, based on the regression since the 2011 high.”

ALSO READ 👉Tech entrepreneur, Ezra Olubi causes a stir with his outfit to a friend’s wedding

Currently, Bitcoin is trading at just shy of US$60,000 (A$79,000) per coin, having already made stratospheric gains in the past 12 months.

 

Despite this growth the analysts believe the cryptocurrency still has room to mature.

“Bitcoin adoption has become more sudden than gradual and is likely to accelerate, as we see it, underpinning its price for the foreseeable future and magnifying the dollar’s dominance as the reserve currency,” analysts write.

READ  Court Convicts 11 Internet Fraudsters in Port Harcourt

ALSO READ 👉CAC Encourages Companies to Apply for Creation of Entity Electronic Account

“Even with speculative excess in the broader crypto market, we believe Bitcoin is less prone to a sustained trip up.

 

“The imminent launch of Bitcoin-oriented US exchange-traded funds is another bullish underpinning.”

 

The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.

RESOURCE 👉 9NEWS

Leave your vote