The world's largest cryptocurrency, Bitcoin, reached a record high of $73,000 on Wednesday, driven by retail investors' interest in nearly a dozen spot ETFs that have been trading since their approval on January 11. However, the coin quickly dropped back to around $68,000 within two days, struggling to regain its midweek levels by Friday.
Despite the short-term volatility, experts in the crypto market remain optimistic about Bitcoin's future. Kris Marszalek, CEO of Crypto.com, compared the current market conditions to December 2020 and January 2021, emphasizing that the recent correction is a normal part of the cycle. He highlighted that Bitcoin is an asset meant for long-term holding, not short-term gains.
Analysts at Bernstein reiterated their bullish forecast of Bitcoin reaching $150,000 by the middle of next year, attributing the latest rally to the upcoming halving event in April and sustained demand from ETFs.
Michael Novogratz, CEO of Galaxy Digital, expressed confidence in Bitcoin's resilience, stating that he doesn't expect the price to drop below $50,000 unless a significant event occurs. Novogratz believes that the current rally is driven by increasing investor interest and adoption, rather than external factors like government policies.
JPMorgan's Jamie Dimon, a known skeptic of Bitcoin, compared investing in the cryptocurrency to smoking but acknowledged individuals' right to do so. JPMorgan researchers, however, warned that Bitcoin could experience a 33% decline post the halving event in April.
Michael Saylor, CEO of Microstrategy and a prominent Bitcoin advocate, sees Bitcoin as a superior alternative to gold due to its digital nature and trading efficiency. Saylor believes that the decreasing supply post-halving will continue to drive demand and push Bitcoin's price higher.
Overall, while short-term fluctuations may occur, many experts believe in Bitcoin's long-term potential and its role as a valuable asset in the evolving financial landscape.
