With Bitcoin hitting a record high today, topping $66k for the first time, below is a commentary from Samuel Indyk, senior analyst at uk.Investing.com.
Q3 2021 hedge fund letters, conferences and more
Commentary On Bitcoin Hitting All-Time Highs
"Bitcoin hit an all-time high on Wednesday, a day after the launch of the first ETF based on the world’s largest cryptocurrency. The ProShares Bitcoin Strategy ETF launched with a lot of fanfare and the recent run-up in price can be mostly attributed to expectations that a new method of investing in cryptocurrencies would give more investors exposure to Bitcoin and other digital assets.
"The question on everyone’s lips now is where the price of Bitcoin goes from here. A close above the all-time high could lead to further gains with the big round number of $70,000 the next port of call. With Bitcoin now trading at an all-time high and with no previous resistance levels above here, the path of least resistance is likely to be upwards for the time being and $100,000 should not be ruled out by year-end.
"On the other hand, as has been the case previously when major events occur in the cryptocurrency space, a correction could also be on the cards. For example, when the Bitcoin Futures contract launched on the CME in 2017, a bear market occurred shortly after, and it took almost three years for the price to recover. Similar price action was observed this year with the Coinbase IPO marking the previous Bitcoin peak.
"Those who expect higher prices in the coming months will be hoping that the launch of the first Bitcoin Futures ETF won’t see history repeating itself."
For more information, prices and charts on Bitcoin, please see here: https://uk.investing.com/crypto/bitcoin
And for data on all 7,024 cryptocurrencies listed on the platform, please see here: https://uk.investing.com/crypto/currencies
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