Listen to the latest market mood for the BTCUSD.
A recent piece by Bloomberg intelligence made a case for Bitcoin to reach $100,000 within 5 years. The heart of the thinking was that Bitcoin was now an established instrument and was behaving like digital gold. Low-interest rates and large amounts of Quantitative Easing devalue currencies so this adds to the attraction of Bitcoin. The expectation of a US stimulus bill is also weakening the dollar which supports both gold and Bitcoin.
The number of institutional investors moving into Bitcoin is growing. Just yesterday Square announced that it had bought $50 million worth of Bitcoin. This is adding to the $400+ million already bought by Micro Strategy.
Bitcoin has broken out of a daily trend line, so buyers will take a low-risk entry here and limit risk to the other side of the trend line. With Biden ahead in the polls and the possibility of a Democrat clean sweep will mean more potential upside in commodities, and Bitcoin along with it.
Expect Bitcoin buyers at market.
- If Biden falls behind in the polls then the USD will strengthen and invalidate this outlook.
- A daily close back below this trend line will invalidate this outlook.
- A heavy risk-off mood will invalidate this outlook too as equity selling weakens Bitcoin.