Bitcoin price volatile but new all-time high a possibility within next 2 years
Fund manager Meltem Demirors believes Bitcoin will take 2 years until it returns to a new all-time high price by mid-2024.
- Bitcoin appears to have found support around AUD$29,000 (US$20,000), but experts believe it is likely to dip below this threshold from time to time.
- Analysts believe that the ongoing crypto winter may see more than 90% of all projects in the market being wiped out.
After having scaled as high as AUD$32.5K (US$22K) earlier this week, Bitcoin has once again been gripped by bearish action. It is currently down -3.3% over the week to trade at AUD$28,839 (US$19,528).
According to Meltem Demirors, chief strategy officer for digital asset management firm CoinShares, the current macroeconomic environment is causing Bitcoin to slide and will continue to do so for the foreseeable future. That said, she sees the digital currency hitting new all-time highs (ATH) within the next 24 months.
Demirors noted that Bitcoin has always functioned as a "cyclical asset" with its drawdowns from peak to trough ranging anywhere between 80% and 90% over the past decade. Currently, BTC is down 71% from its ATH with there still being some more room for "downward price action". She highlighted:
"We obviously had a lot of liquidations, a lot of insolvencies that had a massive impact on the market. We're talking about US$10, $20, $30 billion of capital that has basically evaporated overnight. [However], in the next 24 months, we will see new all-time highs in Bitcoin."
As far as Bitcoin's near term future goes, she sees the currency having found strong support around AUD$29.5K (US$20K), claiming that the asset will not fall below AUD$20.6K (US$14K) under any circumstance.
What lies ahead?
As per Louis Schoeman, executive for Forex Suggest, the ongoing bear market stands to wipe off more than 90% of all crypto projects in existence today. He believes this winter will stimulate a "cleansing process", adding: "It serves as a massive opportunity for many no-coiners to enter the crypto market for the first time. Fortune favours the brave in crypto right now."
Recently, Dallas Mavericks owner Mark Cuban claimed that the bear market will only subside once more applications with business-focused utility make their way into the market.
Disclosure: The author owns a range of cryptocurrencies at the time of writing