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Crypto analysts say ‘not a bubble’ even as BTC flirts with $60,000

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Some cryptocurrency market analysts say BTC is not ‘in a bubble’ even as the world’s largest crypto by market cap flirts with the crucial $60,000 price level, a report on British news outlet The Independent noted today.

BTC a bubble?

“BTC has been on an epic rally since last October. Almost week-on-week, the price has been smashing through barrier after barrier, reaching new highs,” said Nigel Green, the CEO of financial advisory firm deVere.

Green added that the slowdown in BTC (and crypto) markets was likely temporary and could cause a new interest from institutional capital, leading to prices going up permanently.

BTC traded as low as $5,200 last year before posting a relentless surge over the past months. It set a new all-time high of $61,711 last month but has since traded in a choppy range over the past two weeks.

But for some, the price action shows no sign of a classic market bubble—the phenomenon of everyone buying a particular asset because it keeps going up to the point of prices not reflecting reality.

“This time this is not a bubble, but a permanent market shift with BTC and other cryptocurrencies entrenching as a fully-fledged investment asset class,” said Konstantin Anissimov, executive director of the cryptocurrency exchange CEX.IO.

Anissimov added that investors have found themselves in need of new ‘safe-haven’ assets to save their capital and that BTC has come into the focus of institutional investors’ attention in the ongoing-coronavirus era. “Their funds were the fuel for BTC’s fast growth,” he said.

Companies adopt BTC

Companies from finance to technology, to family offices and oil players, have embraced BTC over the past year amidst fears of overinflation and an overall uncertain economy. Most of these investments originate from the US and Europe, but some companies in China have recently jumped on that train as well.

Some, like business analytics provider MicroStrategy, have tried to move away from the US dollar as a reserve asset entirely. The firm has picked up over 90,000 BTC (worth over $5.3 billion at press time; spread over various purchases starting mid-2020), with CEO Michael Saylor stating that the asset’s ‘harder, stronger, faster, and smarter than any money that has preceded it.’

Others like electric carmaker Tesla are making BTC a bigger part of their business. The firm announced it owned over $1.5 billion worth of BTC in February, but added the currency as a payment option for its cars in the US. The firm, in addition, said it would hold on to the BTC, instead of selling it for fiat outright.

Doesn’t sound like much of a bubble when you hear of adoption like that.

The post Crypto analysts say ‘not a bubble’ even as BTC flirts with $60,000 appeared first on CryptoSlate.


All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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