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Bitcoin price $ 41,000; What will happen now?

Bitcoin price In less than a month, it peaked at $ 41,000 after crossing the $ 20,000 barrier. Many analysts, meanwhile, are asking where Bitcoin’s final destination is.

CoinDesk at Report Recently, in connection with the situation of the Bitcoin market, it seeks to answer the question why Bitcoin continues to rise and is there a possibility of a fall?

Bitcoin was born 12 years ago as a new payment system. The mechanism of bitcoin is such that it works on the Internet platform and the processes that take place in this platform, and no person, company or institution can control it. The fact is that the history of bitcoin transactions is not very long and many of the methods used to estimate its value do not work as well as they should; Because of this, almost no one knows what the real value of Bitcoin is now or in the future.

Institutional investor demand

Some market analysts and experts believe that institutional investors see Bitcoin as a safe haven from inflation. They cite the 21 million bitcoin supply limit contained in the codes of this digital currency as the most attractive feature for large grain investors. Central banks, such as the Federal Reserve, on the other hand, decide on the supply and printing of more money in their committees. Big letters in investment markets such as Tudor Investment and Guggenheim have stated that they have bought bitcoins or invested in derivative markets such as the Chicago Mercantile Exchange (CME) through futures contracts. Even the big company Morgan Stanley announced yesterday that it has bought 10% of the shares of Microstrategy. Microstrategy is one of the largest companies to enter the bitcoin market. The company is said to have about 70,000 bitcoins. Analysts at JPMorgan, on the other hand, predict that the price of bitcoin will reach $ 145,000 in the long run.

Decrease in the dollar index

Dollar price index
Dollar price index

The dollar index, which represents the value of this currency, has decreased by about 6.8 percent in 2020 and this year, compared to the value of currencies such as the Japanese yen and the euro. The weakening dollar index is one of the most important factors for the bitcoin trend; Because the price of digital currencies and the dollar index are widely correlated. The printing of $ 3 trillion over the past year is one of the factors that has devalued the dollar index. For a better comparison, the volume of dollars printed last year is three-quarters of the dollars printed during the 108-year history of the US Federal Reserve. Many believe that with the Democratic administration in power in the United States, government spending will increase, leading to larger advocacy initiatives. Some predict that in the coming years the US budget deficit will increase and additional costs will be covered by more printing.


Many predict the price of bitcoin. Buying bitcoins is now easier than ever, and you can easily buy bitcoins with services like PayPal. Data from analytics firm ByteTree show that bitcoin purchases are concentrated in the $ 600 range; This is exactly the amount of US government support checks given to American citizens due to the outbreak of the Corona virus.

The factors mentioned earlier may increase the price of bitcoin in the future; But is the price likely to fall? Here are some factors that may cause the price of Bitcoin to fall.

Bitcoin fluctuations

Bitcoin price fluctuations in the past hours
Bitcoin price fluctuations in the past hours

Bitcoin continues to be a volatile asset, according to Joe Dipasquale, CEO of BitBull Capital. He went on to point out that after the price of bitcoin reached a new historical high, bitcoin price fluctuations reached $ 7,000, adding:

People can use a lot of leverage in trading, and this makes their situations liquidate very quickly; The factor that caused these fluctuations.

According to Dipascal, there is a possibility of correction. Because there are so many orders in the $ 28,000 range, we may see support in that area.

Historical data

Gavin Smith, CEO of Panxora, says it is unprecedented since 2013 that the price of bitcoin has fallen by at least 25 percent from a peak. He says he would not be surprised if Bitcoin soared to $ 70,000 or $ 80,000 and then lost 40 percent of its value. Expressing his ascending view in the medium term, he said:

Over a three-year period, Bitcoin is a great asset.

In the long run, there is a risk that technological advances will overtake bitcoin. “It’s about that,” Smith says.

Even with quantum processing, there is no sign that technology will overtake bitcoin in the future; But it is always dangerous to ignore danger.

Fall to current levels

Mike Venuto, a portfolio manager at Amplify Transformational Data Sharing, believes that we may see a double or triple jump in price before Bitcoin falls; This means a correction equal to two-thirds of the peak price of bitcoin on paper. Venoto continued:

Most likely, the reason for the fall of the market will be the excessive rise. I do not think we will see this happen any time soon.

market status

Denis Vinokourov, senior director of research at Bequant, said in a statement:

The fluctuations will increase and it is true, these fluctuations will be severe. There are many micro-investors who are getting anxious.

According to Vinokorov, prices will rise in the long run. He cites the entry of large Wall Street companies into the bitcoin market as the cause of this and adds:

Could it reach $ 4,000? Yes.

He says anything could drive crazy sales in the market. These include potential legal action by governments against Tetra, a private digital currency, a dollar-backed digital token-like digital coin, or anything that could become a source of liquidity in the digital asset market. It should not be forgotten that the Senate is seeking to pursue its lawsuit against Tetra in court.


James Angel, a professor of economics at Georgetown University, said in a statement:

The history of financial markets is the history of bubbles.

In another part of his speech, he states that if government and judicial officials look at Bitcoin as a threat, they can challenge it.

Almost everyone who wants to make their own money has to compete with national currencies, and lawmakers often dismiss them.

Market sentiment

Sui Chung, CEO of CF Benchmark, states:

At the moment we see that the sentiment in the market is quite upward, however there is a possibility of price correction.

In another part of his remarks, he said:

This is a natural part of the market. While this sector is likely to suppress market excitement, it still makes it possible for the market to climb in the future.

Withdrawal of profit

Guy Hirsch, chief executive of the eToro platform, says:

It is likely that we will see a profit during this cycle, and this may lower prices. But given the tremendous acceptance by institutions, it would be surprising if the price of bitcoin fell below $ 20,000 again.


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