Cryptocurrency prices could be about to explode higher, according to analysts. These views will provide some encouragement to investors who have seen their assets move sideways recently. Bitcoin price has remained stuck below $29,000 while Ethereum is below $2,000. Other altcoins like Cronos, Solana, and Hedera Hashgraph have also wavered.
Analysts are bullish on Bitcoin
The recent crypto rally has encouraged some cryptocurrency bulls to predict that Bitcoin price will continue surging this year. In fact, Bitcoin, which has jumped by more than 80% this year has outperformed gold, Nasdaq 100, and S&P 500 index. It has jumped in the past four months straight.
In a report, Bloomberg noted that Bitcoin price tends to jump by more than 200% whenever it jumps in four straight months. Therefore, if history repeats itself, we will likely see Bitcoin price surge to more than $105,000.
The report also cited other analysts who are bullish on Bitcoin prices. Last week, an analyst from Standard Chartered wrote that he believes that BTC could surge to $100k in the near term. He cited the banking crisis and the fact that BTC is seen as a digital alternative to gold.
Another Bloomberg Intelligence analyst predicted that BTC will rise to $50,000. He believes that Bitcoin price would surge to $185k if investors allocate just 1% of the world bond market to the coin.
In the report published on Sunday, an analyst at CMC Invest cited the fact that liquidity data was showing positive results for the industry. He said:
The bullish case for Bitcoin
Analysts are citing numerous factors in their case for Bitcoin. First, there are fears that the banking sector is imploding. On Monday, First Republic Bank failed, becoming the second-biggest bank to fail in the US. Other banks that have failed this year are Credit Suisse, Silicon Valley Bank, Signature Bank, and Silvergate Capital.
There are worries that other banks will fail as well because of their exposure to the commercial real estate sector. Also, many regional banks hold low-interest rates, which have become unprofitable in an era of high-interest rates.
Second, there is optimism about the Federal Reserve. As it meets this week, the bank could consider the vulnerability of the banking sector and decide to either leave rates unchanged or hike by 0.25% and point to a strategic pause.
Third, the other case for Bitcoin is the upcoming halving, which is set to happen in 2024. In most periods, cryptocurrencies tend to rise ahead of halving.
The other bullish catalysts for Bitcoin price are its scarcity, its stability over the years, and the fact that the regulatory picture is becoming clearer. Last week, the EU parliament voted for the first EU-wide set of crypto regulations.
Implications for altcoins like Polygon, Tron, Hedera, and Cronos
It is still unclear whether these bullish Bitcoin price predictions will come to pass. If they do, it means that other altcoins like Polygon, Tron, Hedera Hashgraph, and Cronos. As shown above, Bitcoin tends to have a positive correlation with these altcoins.
As you remember, most altcoins surged to a record high in 2021 when Bitcoin hit an all-time high of $67,000. They all then dived when Bitcoin dropped to $15,000 early this year.
