The crypto-currency market continued its strong momentum on Monday. Bitcoin rose to 8500 U.S. dollars last week. After hitting a new high for four weeks, it continued to make persistent efforts this week. Today is Bitcoin currently up 0.08% at $8865.
According to Bloomberg’s analysis, the rise of Bitcoin was due to the admission of large-scale hedge funds and the short-term liquidation of a record size. In addition, the sell-off triggered by the US tax season ended.
In addition, CNBC reported that many crypto-currency analysts believe that Bitcoin prices are expected to rebound after the tax season. Tom Lee, a managing partner at consulting firm Fundstrat Global Advisors and long-time bullish Bitcoin analyst, estimated that U.S. households have owed $25 billion in taxes due to their encrypted digital currency. He predicted that Bitcoin prices will rebound after the tax return and set their mid-year target at $20,000.
Tom Lee also reiterated expectations last week that Bitcoin is expected to rise to $25,000 by the end of this year. At that time, he believed that Bitcoin was already oversold and it was approaching the end of the tax season. Selling pressures have begun to weaken.
Michael Collins, founder and CEO of GN Compass, also believes that Bitcoin and Cardano will benefit most from the upcoming bull market. He said that after four months of bear market, there are strong signs that we are moving towards a bull market; Bitcoin prices may reach 15,000 U.S. dollars this year.
At the same time, market participants such as Frank Cappelleri, managing director of electronic trading system operator Instinet, also believe that technical analysis shows that Bitcoin prices will rise, but the increase will be smaller.
In addition, Rewardstoken.io president and CEO Todd Rowan also believes that after spending US tax season selling Bitcoin seems to have found a growth momentum, which is all encrypted currency as a whole. Bitcoin is the current encryption engine of the train.
Analyst of Saxo Bank forecasts growth of Crypto-currency
The influential investment bank Saxo released a 35-page outlook for the second quarter of 2018. In it, cryptanalyst Jacob Pouncey noted the risks faced by companies in the first quarter of this year with respect to digital assets. Taking into account several factors, he believes that the next three months can become breakthrough for digital assets capable of provoking a “bullish” market.
In his forecast, Poncey notes that “the crypto-currencies returned to the ground in the first months of this year, after a sharp increase in late 2017. The situation remains unstable, given the prospects for strengthening regulation and bans on advertising in social networks. Nevertheless, we cannot rule out the possibility of their return. “
Poncey also notes that “in the market there have been several major acquisitions of crypto-instruments by financial companies such as Goldman Sachs, who is an investor in Circle, which bought the Poloniex exchange, and Monex Group, which bought Coincheck and Yahoo Japan.” In addition, crypto-exchanges, such as Coinbase, were able to hire talented professionals from Silicon Valley, and they are in key management positions.
Poncey concludes: “Several events can serve as springboards for the crypto-currency” bull market “in the second quarter through fundamental drivers […]. In my opinion, in the end, we will see the end of the fall of the Crypto-currency.”
Many finance gurus expect that a light credit market will run out in the coming months as part of a hedge against inflation. This may mean that traditional shares will become less attractive, and the search for “uncorrelated assets” will begin.
These are “assets that lie beyond the reach of the traditional financial system, in which crypto-currencies are a potential alternative,” insists Poncey. “Historically, many prestigious crypto-currencies have grown in the face of global uncertainty and […] the inflow of institutional capital into the crypto-currency market due to increased regulation and protection of investors could lead to the development of the crypto-currencies in the second quarter of this year.”
Author: Marko Vidrih @cryptomarks