The worlds-largest digital currency, Bitcoin (BTC), could remain stuck in a price range of $8,000-$20,000, which would make it more like digital gold, according to Bloomberg Intelligence analyst Mike McGlone.
During a recent appearance on Bloomberg Technology, McGlone said that volatility in Bitcoin was “virtually guaranteed” to reach new lows.
“The low in 180-day volatility is around 40% and that is from October 2015. That marked the bottom in the market and it took off,” the analyst said. He then noted that with the growing number of ways to get involved in Bitcoin, like existing and upcoming BTC futures products, volatility would inevitably be suppressed. McGlone believes that this process has already begun.
“[Bitcoin] is putting a pretty good low for the year, good supports are at $8,000, pretty good resistance around $20,000,” McGlone said. “It could be stuck in that range endlessly, which should push volatility low, which makes it much more like gold.”
The analyst also highlighted the importance of the number transactions and addresses used. Based on the current reading from those indicators, McGlone believes that the Bitcoin market is in “extended hibernation”.
On the same programme, Spencer Bogart, general partner at Blockchain Capital, said that over the next year he expected to see increases in Bitcoin users, nodes supporting the network and Bitcoin miners. He also noted the 2020 halving of BTC mining rewards, which is expected to drive the Bitcoin price higher. Bogart forecast that Bitcoin would be worth “a lot more” in the next two to five years than it is today, but added that its trajectory over the next six months was not yet apparent.
In today’s trading, the Bitcoin price stood at $10,051.22, as of 13:50 BST. The digital coin has lost 0.2% of its value in the past 24 hours, according to data from cryptocurrency tracker Coinmarketcap. The coin’s total market capitalisation currently stands at $179.8 billion, which represents 68.5% of the combined value of all digital coins.
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