Bitcoin is currently valued at $8,635 and as the market is still waiting for another significant surge, a lot of analysis and price forecasts are still pouring in. While some people are notably bearish, the larger percentage of the global cryptocurrency market is significantly bullish.
Experts in the recent past have discussed a few key factors that significantly contributed to the Bitcoin rise including institutional investors, and the fear of missing out (FOMO). However, another analyst has noted that the next surge will see prices reaching unprecedented heights based on natural causes.
Aaron Brown, a Bloomberg writer who recently published a piece with certain Bitcoin market forecasts has said that prices could surge as high as $60,000 and before a pullback occurs, it could reach $400,000. Brown notes that this could happen as a result of certain possible and natural occurrences in the global financial market as opposed to happening because of FOMO.
According to Brown, the market is currently a lot bigger than it used to be during the previous rallies in 2013 and 2017. During these times, retail investors were noted to be a driving force behind Bitcoin’s surge.
However, the current market situation has a lot more investment, especially from a nifty number of institutions. In 2018 alone, various institutions invested over $30 billion to support new projects.
Brown also notes that with regards to regulations, things are a bit less confusing than they used to be and this just might be why there has been some influx from major traditional market players, into cryptocurrency. Some of these players include JPMorgan Chase, Goldman Sachs, and Facebook.
Brown, however, warns that even though everything looks really peachy at the moment, the chance of a crash cannot be completely eliminated. Regardless, the market has developed well enough for there to be a certain comfort level of predictability instead of the sudden changes that used to plague it.
Back in 2017, the asset was trading at a volatility level as high as 300%. The current level of 85% is definitely a breath of fresh air, which directly implies stability.
The correlation between Bitcoin and the S&P 500 is also something to consider. The current relationship is such that if there is a quarter where the correlation is zero or somewhere around it, by the next quarter, the coin’s volatility surges but its returns also do.