Expert analysis: Bitcoin’s next price target is AU $68k as confidence returns
BTCs 30-day gains currently stand at 28%
- The number of users entering the Bitcoin network in recent days has been quite significant.
- US inflation numbers are at their worst in well over a decade, leading Bitcoin bulls to accumulate more.
- Reports indicate consumer prices are set to increase by a sizable 0.5% in the near term.
After having scaled up to a relative high of AU $51,600, Bitcoin's value proceeded to correct and dip by around 2% bringing the asset's value closer to its current level of around AU $58.5k. At press time, the digital currency is trading at AU $59,000.
In regard to BTCs potential future price action, Lex Moskovski, chief investment officer at Moskovski Capital, highlighted that data available online suggests that there has been a dramatic spike in new users entering the Bitcoin network, something that could have helped spur the value of BTC/USD recently.
Similarly, on-chain analyst Willy Woo is also of the opinion that Bitcoin's current momentum should see it easily push past the AU $68,000 threshold. In his view, there is a severe supply-demand imbalance going on in the market, as a result of which prices could soar in the near term.
Incoming inflation figures could help spur the crypto market
As per numerous sources, the United States Bureau of Labor Statistics is all set to release July's inflation report within the coming few days, with markets forecasting a 0.5% spike. These projections are based on the fact that the consumer price index (CPI) recently showed a 5.4% year-over-year jump — its largest increase in well over a decade.
As was to be expected, these numbers have been viewed extremely positively by Bitcoin bulls globally. However, despite all the optimism, the digital currency's near-term upside target seems to only be at around AU $60,000. Therefore, it will be interesting to see how the coming few days playout for the market.
Market confidence is at an all-time high
In recent months, an increasing number of traditional players have continued to enter the crypto industry. For example, insurance giant AXA recently started allowing customers to start paying their bills using BTC. Similarly, Visa now accepts USDC (a stablecoin backed by the US dollar) settlements, allowing for a higher degree of financial flexibility. Most recently, Coca-Cola's subsidiary wing Amatil afforded its suppliers the ability to start making payments in crypto.
Lastly, many prominent mainstream financial entities such as JPMorgan Chase, Goldman Sachs, Citigroup, and BlackRock recently have recently shown their commitment to the crypto industry by making sizable investments in various digital offerings.
Disclosure: The author owns a range of cryptocurrencies at the time of writing