Bitcoin could hit $ 70,000 in December, based on this valuation model, some analysts say
Bitcoin slipped more than 4% after breaking above $ 57,800 on Monday, the first time since May.
The BTCUSD cryptocurrency,
Recently traded at $ 55,526, down 3.3% in the past 24 hours. Bitcoin is still up 12% over the past seven days.
Most of the top 50 cryptocurrencies were in red Tuesday at 4 p.m. EST, according to CoinMarketCap. Ether ETHUSD,
Recently traded at $ 3,487, down 0.6% in the past 24 hours. Dogecoin DOGEUSD,
posted a loss of 1.4% in the past 24 hours, recently trading at $ 0.22.
Bitcoin’s price move is not unusual given a recent increase in volatility, Louis LaValle, managing director of crypto fund manager 3iQ Digital Assets, told MarketWatch.
The BitVol Index, which measures the 30-day implied volatility of bitcoin option prices, has jumped more than 10% in the past 10 days, LaValle noted.
Some analysts have attributed the slowdown in bitcoin to contagion from smaller cryptocurrencies. “The broader Alt market (altcoin or alternatives to bitcoin) suffered losses and ultimately weighed on bitcoin sentiment,” wrote Matt Blom, global sales and trading manager of the Eqonex crypto exchange, in his Tuesday notes.
From a technical standpoint, bitcoin could embrace a two-week consolidation phase, as a new short-term countertrend signal appeared on Sunday, wrote Katie Stockton, founder and managing partner of the company. research Fairlead Strategies, in Monday Notes.
However, after consolidation, bitcoin could hit an all-time high in the coming weeks as the cryptocurrency maintains positive mid-term momentum, Stockton noted.
Armando Aguilar, digital asset strategist at Fundstrat Global Advisors, echoed the bullish view, saying bitcoin could soon hit an all-time high. The market saw institutional inflows, amid optimism that the SEC would soon approve a bitcoin futures ETF.
There has been a recent increase in the volume of bitcoin transactions, primarily transactions with sizes greater than $ 10 million, Aguilar noted, citing data from Glassnode.
“We note that during its previous run to an all-time high, BTC benefited from a similar increase in larger trades, possibly institutional allocations and deep-pocketed traders entering long positions,” commented Aguilar to MarketWatch by email.
Based on stock-to-flow patterns, BTC could see prices exceed $ 70,000 by the end of the year, Aguilar said. Stock-to-flow is a measure that assesses the current circulating supply of an asset against the flow of new production to predict price movements.
“Most analysts are predicting an all-time high in November, with a rally that may continue through January and February,” said Rosh Singh, CEO of crypto trading platform Quadency.
Other cryptographic events
Coinbase COIN, a cryptocurrency exchange listed on the Nasdaq,
is launch a marketplace for non-fungible tokens, or NFT, because interests in space remain heated. OpenSea, the largest NFT marketplace, has seen a transaction volume of around $ 2.8 billion in the past 30 days, according to data site DappRadar.
Rival Coinbase exchange FTX launched an NFT market through its U.S. branch on Monday, with initial support for NFTs on the Solana blockchain.
Payment processor Stripe is building a crypto team. “I am recruiting engineers and designers to build the future of Web3 payments”, Guillaume Poncin, engineering manager for the company’s cryptography wrote in a tweet.