777979 SIP myths you must know!
Given that Bitcoin had a strong 55% correction post-May, investors were hesitant. From July, however, the mood is bullish.
Bitcoin by nature is a volatile asset. Consider this — during the last week of 2013, the value of Bitcoin was 1200. It went from 1200 to 20,000 in 2017 just in a few months. Similarly, the oldest virtual currency touched the peak of nearly $64,000 in April 2021 but within few days it also touched the lowest mark of $28,901 on June 22, 2021. But now the cryptocurrency has started inching closer to the higher end of the trading range. Will it attract retail investors again fuelling the crypto rally? Will it be able to hold the momentum breaking its previous high?
Amid the correction in major cryptocurrencies in the last few months trading volumes of most of the exchanges had fallen sharply. But now the numbers have again started rising.
“Bitcoin has grown from a quarterly low of $29,400 mid-July to breaching $52,000 this week. This represents a growth of more than 75% in the 45 day period. Naturally, a lot of analysts are excited about the possibility of Bitcoin going above its previous all-time high of $64,000 this year. Meanwhile, other cryptocurrencies (known as altcoins) have grown at a significantly higher pace in this period with decentralized finance (DeFi) and NFT based blockchains such as Ethereum, Cardano and Solana leading the way,” said Vikram Subburaj, co-founder and CEO of Giottus Cryptocurrency Exchange.
Nirmal Ranga, Vice President of Trading at ZebPay, concurs.
“BTC market capitalisation is approaching the $1 trillion mark, as the asset approaches the $53,000 level. BTC dominance is currently around 42%. The asset has been witnessing a rally, which has been supported by good volumes and momentum, signalling that institutional investors have started to re-engage in the asset, and BTC optimists are flowing in more money, driving inflows,” he told Money9.
Outlook
Given that Bitcoin had a strong 55% correction post-May, investors were hesitant and measured with their investments till June. From July, however, the mood is bullish.
“Bitcoin’s outlook for the final quarter of this year is extremely strong with predictions of $80,000+ price levels being in play. However, September has traditionally been a month of declines and so there might be some short term corrections before Bitcoin starts a rally akin to the one in the first quarter this year,” said Subburaj.
Bitcoin is currently trading at $52,299 and has given more than 78% return since the beginning of this year. Currently, the global market cap is at $2.34 trillion, 0.09% lower than the previous day.
“Fundamentally, this shows that the outlook is positive, and remains a bullish sign for the asset. Moreover, as the finite supply of BTC reduces, this creates upward pressure on the asset, causing a surge in prices, as it becomes more valuable, and is supported by strong demand, this seems like an attractive proposition. In terms of market capitalization, BTC is up by roughly 20%, since the rally started around a month back, and volume has also seen an upside, up about 12% during the same period, reflecting more activity in the asset,” said Ranga.