The cryptocurrency king Bitcoin smashed another record and grabbed investors’ attention again. It appears that there is nothing stopping the bitcoin freight train. The cryptocurrency barreled toward $8,000 ($7,997 to be precise).
That is a whopping 41.97% increase in the price after this week’s low of $5,605. Gains like this are unheard of and clearly, this is an uncharted territory.
However, the reality is that this instrument is driven not only by speculation but strong demand as well. Based on the moves which the currency has experienced and its strong momentum, I do think that the cryptocoin could touch the $10,000 mark by the end of this year or early next year. It may seem bizarre and one may think it is not possible. But think again. I am only referring to a 25% gain from its peak of $7,997. This is an instrument which has rallied 41.97% only this week so another 25% gain may not be that much of an issue.
Here are the primary reasons. As I said earlier, the momentum is behind it and the developments like Goldman Sachs’s analysts writing a note to their investors and predicting the price of $8,000 to pave the way for this kind of rally. The CEO of the firm, Lloyd Blankfein, has struck a very balanced approach on this (or the watered down version of this could be neutral view).
In his own words, “I’ve learned over the years that there’s a lot of things that work out pretty well that I don’t love.” The Wall Street giant is exploring a client facing brokerage unit which would cater cryptocurrency. Goldman’s clients are not your average small punters, they have deep pockets who can stomach big fees. Also, it would not be the only bank to go down this path. In fact, it will only open the gates for many other major banks who are in denial of the cryptocurrency’s strength. Therefore, I do believe that institutional money is going to open the flood of fund flow.
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