Bitcoin's value is still regularly increasing, but experts forecast BTC's recent gains to be short-lived.
BK Asset Management FX strategy director Boris Schlossberg said in a recent statement that the coin is close to an intermediate-top. This will result in a sudden decrease in value which can then create a domino effect throughout the entire crypto community.
BTC trades at $59,300 over the past 24 hours, which is lower by 0.54% compared to 3 days ago.
However, its current price is on a bull run as it increased by 11.2% since last week. Note, though, that it reached an all-time high record of $61,683 last month. It went down considerably, but recent gains indicate a strong recovery in the short run.
The Case With PayPal
Bitcoin's price hike happened after PayPal Holdings Inc. announced its support for crypto holdings. In a report, PayPal says that their US users can use coin holdings as payment to millions of online merchants globally.
This surprising move came after Visa Inc. also allowed payments to be settled via crypto using Ethereum's blockchain system.
Mass Adoption Underway
Furthermore, Schlossberg says that CME Group's upcoming Micro Bitcoin campaign for its futures contract can drastically affect Bitcoin's price. This will happen because Micro Bitcoin futures is just one-tenth of BTC's current size.
Schlossberg notes that Bitcoin experienced massive gains the last time CME launched their first BTC futures back in late 2017. Miller Tabak Chief Marketing Strategist Matt Maley supports Schlossberg's arguments, saying that the crypto's price will most likely reach $52,000 this year. This will then serve as a clear sign that Bitcoin's volatility continues stronger than ever.
However, Maley also added that Bitcoin could reach another all-time high if it goes beyond the $61,000 mark this year.
Newbies HODL as Bitcoin's Price Increases
New research from on-chain data platform Glassnode states that the exponential increase in Bitcoin price has created a new group of risk-takers who are willing to invest heavily in the crypto despite its volatility.
The report states that the HODLer population experienced a massive 500% increase over the past 6 months.
They are also expected to become long-term coin holders. HODLing is slang for holding crypto coins for a very long-time and not selling them even if their value increases or decreases.
Glassnode further states that HODLed coins are now maturing, and current outflows from exchange platforms show that BTC won't slow down anytime soon.
There is also a growing number of BTC investors who move their crypto assets into storage, suggesting lesser interest in short-term crypto trading.