Bitcoin price saw a major price and volume increase in the last 24 hours, skyrocketing up by over 25%. The coin managed to reach a new all-time high, causing another massive rally in the crypto industry.
Fundamental analysis: What is new with Bitcoin?
Bitcoin recently saw quite a few mentions in the news, making countless headlines every day. Yesterday, February 8th, the coin’s price surged past $40,000, causing analysts to announce another jump in value. Many pointed out that the last excursion past $40k led to the coin’s ATH in early January. Now, exactly a month later, the coin skyrocketed again.
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Of course, this latest surge is still barely scratching the surface of Bitcoin’s true potential, as One River Asset Management’s CEO had predicted. The CEO, Eric Peters, shared his view on BTC, stating that the coin will be worth more than gold, with its value eventually reaching $500,000 per coin.
For now, BTC’s value is still only one-tenth of this amount, although there is a lot of room for the coin to grow.
Another positive development for Bitcoin came with the announcement that Bill Miller’s multi-billion hedge fund will add Bitcoin exposure via Grayscale’s Bitcoin trust. Grayscale is one of a few major companies to acquire digital currencies for institutional clients, and institutional interest is actually believed to be largely responsible for the surging price.
From the regulatory standpoint, many were uncertain as to what to expect from the new Treasury Secretary, Janet Yellen. So far, Yellen’s stance towards BTC was expressed as skeptical, at best. However, pro-Bitcoin lawmaker, Cynthia Lummis, recently joined the Senate Banking Committee, and she revealed plans to talk to Yellen about BTC and help her see that it is a great store of value.
Lastly, it is no secret that Elon Musk helped pump Dogecoin’s price over the last few weeks. The richest man in the world likes both, the coin as well as his own impact on its price. He also proclaimed himself to be an official Bitcoin supporter. But, the real price surge came yesterday, after the news about Tesla’s Bitcoin made headlines.
Allegedly, Tesla has $1.5 billion worth of BTC on its balance sheet, and Musk plans for the firm to start accepting Bitcoin payments. This little push allowed BTC to make a new all-time high.
Technical analysis: A new ATH
Ever since BTC hit the $42k mark, the coin’s price struggled. It has been an entire month of drops, trading sideways, followed by attempts to surge, only for the price to be knocked down again.
The best-known surge in the past 30 days was the one that came alongside Wall Street Bets-related short squeeze. After the squeeze, some people — not tied to the Redditors’ group — used the attention placed on the WSB to promote crypto. While they specifically aimed at Dogecoin (DOGE), BTC saw a price increase, as well.
After that, the coin was fairly calm, especially in February. It did climb up ever so slowly, only to start surging after the Tesla news broke out. At that time, it was already back at $40,000, but the news allowed it to skyrocket to $48,200, which is its new all-time high, according to CEX.IO data.
What is next for Bitcoin?
The crypto industry is advancing at a rapid pace, and it is breaking new records much faster than anticipated. Previously, I said that the coin’s stock-to-flow model indicated that Bitcoin can hit $50,000 per coin by the end of Q1, or by March 31st.
However, given the recent developments, this can happen before mid-February. As for the rest of the year, I still believe that Bitcoin will continue to grow to $80,000 by the end of June, and eventually, that it could reach $90,000 by the end of the year.
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