Bitcoin (BTC) has been traded in recent weeks between $9,000 and $10,000 with spikes above and below these levels for short periods of time. This shows that there is a large buying pressure below $9,000 and a higher selling pressure above $10,000. Nonetheless, there are some analysts that believe Bitcoin and other virtual currencies could soon move higher.
Could Bitcoin Move Higher?
As the cryptocurrency market experienced increased volatility since the Coronavirus pandemic started, there are several analysts suggesting that the price of BTC could move higher in the coming weeks and months.
The CEO and founder of the data company Koyfin, Rob Koyfman, stated that the current QE started by the Fed could be certainly negative for the U.S. dollar. This could eventually have a negative impact on other assets and the entire economy. Of course, what can happen with Bitcoin if the dollar falls around the world, is yet unknown.
Meanwhile, Raoul Pal, the CEO of Real Vision, continues with its clear position of a U.S. dollar that is expected to go higher. There are other analysts that consider that the U.S. dollar can move higher not because its own strength but because of the weakness of other currencies such as the European euro, the British pound or the Japanese yen.
Raoul Pal considers that Bitcoin could also benefit considering that the entire fiat system could change. If that happens and if countries move forward with a new non-U.S. dollar-dominated currency system, we could eventually see Bitcoin moving higher and reaching new highs.
Bitcoin: Store of Value of Means of Payment?
Bitcoin has shown to be traded in tandem with the S&P 500 in the last few months. This shows that Bitcoin operates in many cases as a traditional financial asset but with increased volatility during some periods of time.
The Coronavirus crisis has been a very negative thing for financial markets during the first months of the pandemic, but the entire market has already recovered and in some cases reached new highs.
Bitcoin and digital currencies are still growing and expanding in the market. There are still investors that consider that it is too soon or that the market is not yet mature enough to invest in digital assets. However, Bitcoin has proved to be a reliable asset. Whether it will become a store of value or a means of payment, that remains to be seen.
