Bitcoin Price Shows Signs Of Recovery After Last Week’s Crash
Last week, El Salvador’s bid to make cryptocurrency legal tender caused a market-wide crash that caused Bitcoin to fall by 15 per cent from $52,000 to $44,000 in “sudden collapse”. However, the coin’s current price indicates that Bitcoin may be on the path to recovery.
The global crypto market has grown by 3.5 per cent in the last 24 hours and is currently valued at $2.13 trillion. Bitcoin has grown by 4 per cent in the last 24 hours and is currently valued at just over $47,000.
The prices of other cryptocurrencies that also experienced losses last week are also showing signs of recovery. Coins including Ethereum and Binance Coin have grown by around 3 per cent in the last 24 hours. Ethereum (ETH) is currently priced over $3000 and Binance Coin (BNB) has a current price of over $400.
British banking giant, Standard Chartered, recently predicted that Bitcoin could reach all-time highs by the beginning of 2022. However, other predictions state that the coin will experience lows of $20K by the end of the year.
The banking giant believes that Bitcoin will soon become the dominant peer-to-peer payment method in the future cashless world. Standard Chartered based their predictions on the estimated size of the market and used credit card company’s transactions and market valuations as a reference point. The company does acknowledge several obstacles to the all-time high price prediction, including transaction costs and liquidity, but suggests that Bitcoin could overcome these constraints.
Standard Chartered is not the only finance expert to make promising Bitcoin predictions this year. Before the crash in August, many analysts believed that Bitcoin could reach $100,000 by the end of 2021. Amongst these analysts was Mike McGlone, Senior Commodity Strategist for Bloomberg Intelligence. McGlone suggested that Bitcoin was more likely to reach $100,00 than dip to $20,000.
Despite last week’s slump, many stand by their $100,00 price predictions and the recent pierce surge could signify that Bitcoin is on its way to a new all-time high.
It is also believed that, if Bitcoin does reach $100K, we could also see a huge Ether spike. Standard Chartered’s research unit has said that Ether is structurally valued at $26K to $35K, 10 times its current price, but for this to happen Bitcoin must reach $175,000.
One of the first Bitcoin exchange operators, Nike Spanos, has said that last week’s crash was a “false dip”. He said, “Big finance and the media say it’s because there was a bumpy rollout in El Salvador. I’m in El Salvador right now and things are looking spectacular.”
Spanos has backed the $100,000 BTC price prediction and believes that Ether will hit $10,000 by then.