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About 2.5 months ago, I wrote "$25k Bitcoin incoming?" in which I explained that a correction to $25k seemed logical. In March, Bitcoin had exited the trading range where it had moved in for nearly a year. It seemed realistic to assume a retest of this range before Bitcoin could continue its upward path. And last week, that retest finally happened.
In my previous piece, "The FED's dilemma", I concluded with the following forecast:
$40k per Bitcoin is, in my view, the next stop after we hit $25k. And I would not even be surprised if Bitcoin heads towards its old all-time high by the end of this year.
Bitcoin's strong reaction - with a rally of 18% since the correction to $25k - reinforces my belief that we're en route to $40k.
On top of that, this week brought a bunch of positive news from the traditional financial sector. First of all, BlackRock - the largest global asset manager - announced their application for a Bitcoin ETF.
Such an ETF makes it easier for traditional investors, but especially for institutional parties such as insurers and pension funds, to invest in Bitcoin.
But why is BlackRock’s ETF application such a big deal? That’s because since 2017, numerous attempts by BlackRock's rivals to launch a Bitcoin ETF were rejected.
BlackRock however has a track-record of their ETF applications being approved. Out of a total of 576 applications, only one was rejected!
And the BlackRock news triggered a whole wave of new ETF applications. The past couple of days, WisdomTree, Bitwise Asset Management and Invesco all filed for an ETF as well and rumours say that Fidelity is working on an application as well.
It appears that after years of anticipation, we might finally see the introduction of a Bitcoin ETF.
And there was another event that got crypto investors excited. A new crypto exchange, called EDX Markets, opened its doors this week. The interesting thing about this exchange is that it’s backed by several big TradFi names, including: Fidelity, Citadel, and Charles Schwab. And most importantly, the exchange focuses solely on institutional investors.
The filing of BlackRock's ETF application and the emergence of this new exchange serve as strong indicators of the growing interest in crypto from traditional markets. It seems that the big money from institutional investors is finally finding its way to crypto. And that's a big additional reason to be bullish.
So my prediction from last time remains unchanged. Bitcoin is on its way to $40k and I'm not even ruling out $60k by the end of the year.
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