During the last days we could see the Bitcoin price approach the previous all time high. This afternoon BTC wrote history again. The Bitcoin price rose above the previous all time high. What does this mean and what to expect now?
The previous All time high Bitcoin price was set on the 14th of april this year at $ 64.863,-. During European lunchtime the price was a fraction beneath the previous record, but since the American financial markets opened the BTC price is rising.
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What is the current Bitcoin all time high and what does this mean?
At the time of writing the Bitcoin price all time high is $ 66,719.13 which is 6.60% higher than yesterday. However, the price is still rising, so it’s not to say whether this is the new all time high.
This new price record has two major consequences.
- At first it means that everyone who purchased Bitcoin on any given time has made a gross profit.
- Secondly it means that the Bitcoin price has never been tested at this price levels. The consequence of that is that technical analyses are not tested at this level, so predictions might be less secure.
Bearing this in mind it’s the question what will happen next.
What will happen next after this Bitcoin price record?
To determine the price movement of Bitcoin we have to make a separation between the short term Bitcoin price and the forecast for the longer term.
The Bitcoin price on the short term
On the shot term we have to consider that investors might withdraw some of their profits. Furthermore we see that the Bitcoin price has written a profit of over 19% in one week. Usually when such large profits occur there might be a slight correction. However, the question is of these corrections will have a large impact on the Bitcoin price on the longer term.
The Bitcoin price expectations on the longer term
First of all we have to look at the factors behind the current Bitcoin price. As far as known we see two main factors that initiate the rising prices:
- The rising inflation rate in the United States
- The introduction of Bitcoin ETF at stock exchanges
These are both so-called substantial factors. This means that there is no FOMO or impulse price increase since both factors will cause added value to the Bitcoin on the longer term.
First of all we see that the inflation is rising in the USA. Furthermore we know that the American consumers expect a further increase in inflation. Since Bitcoin is seen as an appropriate hedge for inflation, analysts expect Bitcoin to rise. Even more, many of them consider Bitcoin to be a better hedge against inflation than gold. In an interview with CNBC Paul Tudor Jones explained why…
The second factor is the introduction of Bitcoin ETF’s since yesterday.
After a very successful market entrance the Bitcoin ETF has cleared a path to new, more traditional, institutional investors. Therefore the expectation is that these wealthy professionals will buy Bitcoin and Bitcoin ETF’s. This increases the demand and increasing demand means increasing prices. Furthermore the ETF that’s just launched is just one of many to come. For example, earlier today the SEC granted approval to the VanEck Bitcoin Futures ETF. This ETF will start trading on the NYSE next week.
According to analysts there is a side-effect tot this institutional capital entering the Bitcoin-market. Since institutional investors have more advanced investment tools and a more rational approach to trading than retail investors it’s expected that the volatility of the Bitcoin price will decrease and crashes will be ‘more shallower‘. Due to this considerations experts maintain a bullish outlook for the BItcoin price in the coming months. In order to get familiar with all ins and outs of the Bitcoin ETF we provided this ETF Q&A.
An historical analyses confirms and prepares us for a milestone
Apart from these rational bullish arguments there is one other argument. When we look at the 4th quarter of the year after the year of halving, a new price explosion is seen every time. Therefore a lot of analysts reason that the Bitcoin price might be $ 100,000.- or more before the end of 2021.
One of the advocates for this scenario is the Dutch analyst Plan B. With is Stock2Flow model he has been predicting prices for a long time, confirming a rise above $ 100,000.- before the end of year. So far his predictions are almost as clockwork when compared to the actual Bitcoin price movements as to be seen in his own report below.
— PlanB (@100trillionUSD) October 19, 2021
So for now we can assume that the bull run for the Bitcoin price is far from over. On our prices page you can follow all results and live prices of Bitcoin and other cryptocurrencies.
Note: We never provide financial advice, so you can’t interpret our contributions that way. Always do your own research and make rational decisions about whether, when, in what and how much you want to invest.