Bitcoin Price Could Double in Short Order, Says Analyst

Bitcoin (BTC) is currently experiencing a long-term bullish trend that could potentially double the coin's price in just a few weeks if it continues.

Bitcoin’s price could potentially double to $138k this month, based on historical data.

Andrew Throuvalas Last updated: March 7, 2024 19:09 EST | 2 min read

Source: Dalle-3

Bitcoin (BTC) is on a relentless bull trend that could result in the coin doubling in price within the next few weeks alone, according to expert analysis. Pomp Investments founder Anthony Pompliano believes that the digital currency could reach $138,000 after breaking its previous all-time high of $69,000. After briefly surpassing the previous record to touch $69,210, Bitcoin currently trades just below it at $67,423.

Bitcoin Ready To Double In Price

During a recent interview with CNBC, Pompliano shared his insights:

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“If we go back and we look at past record high breaks… three of the four times, Bitcoin doubled in eighteen days or less. Once you break through an all-time high, it’s price discovery – what is this thing worth?”

This pattern was evident in December 2020, when Bitcoin broke its previous all-time high of $19,600 set in December 2017. By January 2021, the asset had already surged above $34,000. A similar trend occurred in early 2017, with Bitcoin surpassing its 2013 high of $1200 in April and reaching $2500 by June.

However, there’s a significant difference this time: Bitcoin’s new all-time high came before the Bitcoin halving event this year, while previous highs have occurred several months afterward. As a result, the impact of the halving on Bitcoin’s market dynamics has yet to be fully accounted for.

“Considering the upcoming halving, and the fact that we’re about to go from 900 Bitcoin a day to 450… it’s hard not to make an argument that Bitcoin is going much higher, and at a faster pace than we all expect,” Pompliano explained.

Bitcoin’s Long-Term Potential

Much of Bitcoin’s recent appreciation can be attributed to the success of new Bitcoin spot ETFs in the United States, which have attracted over $8 billion in net flows since their launch on January 11. Most experts believe this trend will continue, with Bitwise CEO Matt Hougan claiming that corporations and wirehouses have yet to fully enter the market.

Pompliano predicts that three main new buyers will soon enter the Bitcoin ETF market – including public pension funds and sovereign wealth funds. Ultimately, he expects Bitcoin’s market cap to surpass that of gold.

“What Bitcoin has become is an index for global liquidity,” he explained. “If you believe the dollar is gonna continue to be debased over the next decade, Bitcoin’s a winner.”

The value of Bitcoin stored in U.S. ETFs has recently surged past $50 billion, more than half of the total held in the nation’s gold ETFs. MicroStrategy CEO Michael Saylor mentioned in a recent interview that Bitcoin ETFs will soon surpass gold ETFs in AUM.

Additional Information:

Q: What factors contribute to Bitcoin’s price doubling after an all-time high break?

A: Historical data suggests that once Bitcoin breaks through an all-time high, it tends to double in price within eighteen days or less. This phenomenon is primarily driven by the excitement and speculation surrounding Bitcoin’s newfound value, leading to increased demand.

Q: How does the Bitcoin halving event affect its market dynamics?

A: The Bitcoin halving event, which occurs roughly every four years, cuts the rate at which new Bitcoin is created in half. This reduced supply often leads to increased scarcity and can have a positive impact on Bitcoin’s price in the long term. However, the immediate effects of the halving can take some time to fully manifest in the market.

Q: Why are Bitcoin spot ETFs attracting significant investment?

A: Bitcoin spot ETFs provide institutional and retail investors with a regulated and secure way to gain exposure to Bitcoin. The success of these ETFs can be attributed to the growing interest in cryptocurrencies as a legitimate investment asset class. Additionally, the relative ease of investing through ETFs compared to directly holding and managing Bitcoin has made them an attractive option for many investors.

Q: What is the long-term potential of Bitcoin compared to traditional assets like gold?

A: Bitcoin’s long-term potential lies in its ability to serve as a hedge against inflation and as a store of value. As more institutional investors and large funds recognize Bitcoin’s advantages and embrace it as an alternative investment, its market cap is expected to surpass that of gold. The growing belief in Bitcoin as a digital form of “gold” has contributed to its recent surge and increased adoption.

Future Outlook and Recommendations

Based on the current trends and analysis, it’s evident that Bitcoin has the potential to continue its upward trajectory. The combination of market dynamics, the upcoming halving event, and the growing interest from institutional investors all point to a bright future for Bitcoin.

For investors, it is essential to consider the long-term value proposition of Bitcoin and its potential as a store of value. Diversifying one’s investment portfolio to include Bitcoin can help protect against inflation and provide exposure to a rapidly growing asset class.

As always, it is crucial to conduct thorough research, seek advice from financial professionals, and make informed decisions based on personal risk tolerance and investment goals.

Reference List

1. Andrew Throuvalas – Bitcoin Not Taking Off as Mainstream Payment, BOE Governor
2. Bitcoin Price Jumps as Net Inflow into BTC Spot ETFs Rises + More Crypto News
3. Bitcoin spot ETFs
4. Bitcoin’s Potential to Surpass Gold ETFs
5. Bitcoin Halving Explained
6. How To Invest in Bitcoin
7. Cryptocurrency Investment Strategies
8. Should You Invest in Bitcoin?

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