Experts and analysts react to all-time high
It turns out some of the analysts we spoke to last week were right – even if the new all-time high came a bit earlier than expected.
We’ve reached out to more experts and analysts to hear their reaction to the ATH hit today.
Short-term danger level high but longer term picture ‘very promising’
To all the people asking me 'should I buy bitcoin now?' I point out it's doubled in price in just a couple of months – incredible momentum – but when it eventually turns, it could easily fall just as fast, as it did after the last boom. The long-term potential is considerable, but the short-term danger level is high.
All the talk of ‘Tulip Mania’ in the 2017 boom is absent now. Once the historic Dutch tulip bubble burst it never recovered, while bitcoin has now shown it has real staying power…The longer-term picture is looking very promising.
Some of the world's biggest investors say they're now buying bitcoin as well as gold in their effort to find a safe-haven for their wealth. They suspect governments are keen to inflate away debts by printing lots of extra cash, which may lead to inflation. This would mean any assets held in currencies like dollars or pounds would lose value, so investors are searching for alternative currencies like Bitcoin and gold.
Big investors are hoovering up the scarce bitcoin supply, as well as Paypal, Square and other payments companies. However, new research shows most Bitcoin holders are not selling. So with lots of demand and not much available supply, the price is being forced upwards.
Glen Goodman, author of the bestselling book ‘The Crypto Trader’
Anyone who ever bought bitcoin before today and held it is now in profit. People will be wondering how sustainable these prices are for bitcoin given the sharp declines in value we've seen near these levels before. I can’t predict where the price will go from here, but it’s notable how much more mature the market is this time around. With better liquidity, better fiat on- and off-ramps and institutional investors getting involved now that there’s more regulatory certainty, it’s heartening for those of us who believe in the long-term power of cryptocurrencies to increase the freedom of money globally.
Changpeng Zhao, CEO and founder of crypto exchange Binance
$50,000 before Christmas?
With the likes of MicroStrategy, Square, and PayPal jumping on the crypto bandwagon, $50,000 by the end of this year is not at all unlikely. This will be a record not driven by frenzy, but by the big, forward-thinking, finance and technology-savvy institutions that will push crypto into the mainstream.
Antoni Trenchev, managing partner of digital asset firm Nexo