When will Bitcoin price rally end? Here is what’s backing the BTC bull run
April 17, 2021. Summarized by summa-bot.
Compression ratio: 23.8%. 2 min read.
Are BTC prices sustaining due to a continuous stream of good news, or is there more at play?
Was $25,000 an institutional price trigger?While the theory that good news is propping up Bitcoin prices may not create a long-term bull case in and of itself, the market action has evidently been sufficient to make big investors and institutions sit up and take notice.
But when speaking to Cointelegraph, he stated:“Over the longer term, the continued reduction in available Bitcoin on exchanges is very likely to become a bigger factor in price discovery as more and more is removed for very long-term cold storage and new supply, via future halvings, continues to reduce. ”Igneus Terrenus, head of communications at Bybit exchange, considers that the current speculation seen on the derivatives markets can reveal much about what to expect from the rest of 2021.
He told Cointelegraph that: “With June, September and December futures trading at high premiums, we can surmise that the market is betting on the bull run to continue for the rest of 2021. ” He further added that: “In the longer term, where BTC price goes is as much dependent upon its fundamentals as the strength of the [U. S. ] dollar. ”$500,000 and beyond?
According to quant analyst PlanB, the stock-to-flow predictions reveal that the bull run is in an even earlier part of the cycle than the hodl stats indicate.
However, the price peak during this Bitcoin mining reward halving cycle could go as high as $576,000, with the 2021 high forming an average for the entire cycle. If this seems ambitious, then bear in mind that there’s no precedent in Bitcoin’s history for the kind of institutional inflows that are currently being seen, let alone the lack of liquidity as investors seek to hoard their holdings.
Overall, the solid fundamentals combined with a continuing sense of FOMO from institutions mean that there’s a solid case for believing that this bull market will keep running for quite some time to come.