- Bitcoin could eventually reach $400,000 in the future
- Aaron Brown believes fundamentals will play a key role in triggering a Bitcoin bull run
According to Aaron Brown, the author of an op-ed in Bloomberg, said that the next Bitcoin rally could be more measured in the future. He considers that fundamentals and other financial events around the world will be responsible for the price increase of the most popular cryptocurrency.
Bitcoin Could Rise To $400,000
Aaron said that the next Bitcoin bull run could see the digital asset reach new all-time highs between $60,000 and $400,000. In the past, the last two rallies in the crypto market were driven by retail investors. However, he considers this time is going to be different because the market capitalization is also larger than in 2013 and 2015.
In addition to it, he explained that there is a larger number of institutional investors ready to place their funds in the space and more than $30 billion have been used to build new platforms. At the moment, there is also more clarity on the regulatory front.
There are several companies that are currently building new platforms to offer crypto solutions to institutions. Fidelity Investments and the Intercontinental Exchange are two of the firms that are working on different platforms to welcome new large investors to the virtual currency space. Moreover, firms such as Facebook, Goldman Sachs, JP Morgan Chase are trying to test new blockchain applications and some of them launch their own digital assets.
As per the author, Bitcoin is nearly the same price as it was in November 2017, before reaching its all-time high of $20,000 in December the same year. Bitcoin contracts have an 85% implied volatility, which means that there is a 15% change of Bitcoin surging above $10,000 in a mont. Back in November 2017, the same contract was traded with implied volatility above 300% and there was a 25% chance Bitcoin could surpass $10,000.
There are also some correlations to other markets that are worth taking into account. For example, Bitcoin’s correlation to the S&P 500 Index provides some guidance on 2019 price action. When Bitcoin and the S&P 500 Index have a correlation close to zero for a quarter, Bitcoin averages high returns in the following quarter, however, volatility increases.
Brown said that Bitcoin seems to be flipping between positive and negative correlations with the S&P 500 and intense price increases also occur when the correlation is near zero.
At the time of writing this article, Bitcoin has a price of $8668 and a market capitalization of $153 billion, according to CoinMarketCap.
Live Bitcoin (BTC) Price:
1 BTC/USD =$17,850.1465 change ~ 4.67%
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