After a long period of unusually low volatility, the global cryptocurrency market has been abuzz with speculation surrounding Bitcoin’s next major price move. According to James Check, lead on-chain analyst at Glassnode, that move is likely to be imminent and could potentially drive BTC to $32,000. This price level is where Bitcoin’s “true cost basis is sitting,” Check explained in an exclusive interview with Cointelegraph.
To calculate Bitcoin’s average cost basis – the average price at which BTC was bought – Check and his team removed coins that are lost forever from the calculation and focused on active Bitcoin investors. “It’s where the mean reversion level would be, so a rally to that level, to be honest, wouldn’t surprise me,” he said.
Despite this bullish scenario, Check also pointed out that a large number of investors are likely tired of the bear market and waiting for Bitcoin to reach that level before selling, thus putting pressure on the price. “That’s an area where you start getting more resistance,” he stated.
Many in the cryptocurrency community are eagerly awaiting Bitcoin’s next big move after months of relative stability in the market. The current price of Bitcoin is hovering around $10,000, but industry experts such as Check believe that a major price increase could be on the cards soon.
The potential for a significant price increase in Bitcoin has been attributed to a variety of factors, including increasing institutional adoption and a growing number of investment products being made available to investors. In recent months, more and more companies have been expressing interest in Bitcoin as an investment option, with some even adding the cryptocurrency to their balance sheets.
One indicator of Bitcoin’s potential for price growth is its increasing correlation with the stock market. Historically, Bitcoin has been seen as a hedge against the traditional financial system, but in recent months, it has shown signs of moving in lockstep with the stock market. This correlation could be a sign that investors are starting to see Bitcoin as a legitimate asset class, worthy of investment alongside traditional stocks and bonds.
In addition to institutional adoption, there are other factors that could drive Bitcoin’s price higher in the coming months. One of these is the upcoming halving event, which is set to take place in May of this year. During a halving event, the rewards that Bitcoin miners receive for verifying transactions are cut in half. This has historically led to a decrease in the supply of Bitcoin and has been associated with price increases in the past.
Another potential factor is the growing geopolitical uncertainty that is currently affecting global markets. With tensions rising between the US and Iran, and the ongoing trade war between the US and China, many investors are looking for safe haven assets to protect their investments. Bitcoin has been touted as a potential safe haven asset in times of economic uncertainty, and its price could benefit if investors start to see it in this light.
Of course, as with any investment, there are risks associated with investing in Bitcoin. The cryptocurrency market is notoriously volatile, and prices can fluctuate wildly in short periods of time. There are also concerns about the potential for market manipulation, as well as the risk of hacking and theft.
Despite these risks, many investors are still excited about the potential for Bitcoin and other cryptocurrencies. With interest in the market growing, and new investment products coming online, it’s likely that we’ll continue to see significant price movements in Bitcoin and other cryptocurrencies in the months and years to come.
In the meantime, many in the cryptocurrency community will be keeping a close eye on Bitcoin’s price, waiting for the next big move. With so much speculation about where the market could go, it’s sure to be an interesting time for investors in the cryptocurrency space.
