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At the time of writing, the rate of BTC / USD has dropped slightly to $ 37,583.
But a couple of days ago, Bitcoin was trying to resume its bullish momentum, however, the movement was very weak as compared to its previous rallies. Despite that, analysts believe that it will still grow, albeit very cautiously. Some even suggest that by the end of this day, BTC will rise to $ 42,000, which is a very bold forecast.
In 2017, Bitcoin already reached such a high level, but following it was a large-scale correction. Now, the climb towards this value is clearly speeding up, which is toning up investors.
According to CoinMarketCap, over the past 24 hours, the cost of bitcoin has risen to $ 39,966, but has fallen very quickly. The lowest rate yesterday was $ 37,653 not $ 31,000, which means that market participants are very actively supporting the cryptocurrency, even despite the massive liquidation this week.
Most likely, Bitcoin will not drop sharply even amid expectations of massive economic stimulus. Just yesterday, President-elect Joe Biden announced his plans of introducing a $ 2 trillion-worth of incentives to the United States. The package provides $ 2,000 direct payments to Americans, which will help accelerate inflation. Accordingly, such will increase demand for alternative assets such as Bitcoin.
To add to that, the European Central Bank called on other countries to regulate bitcoins, since they are speculative assets.
Therefore, Dan Morehead, CEO of Pantera Capital, is confident that by August 2021, bitcoin will cost at least $ 115,000. He believes that the launch of the digital yuan and other events in the digital world will have a favorable effect on the cryptocurrency market.
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