As the first month of the new year began, the crypto market also started a bull to reach its highest point. But, at the same time, the institutional investors are still on the sideline and think the market rise is temporary.
Institutional investors are currently “simply observing” despite the 23% weekly increase in the price of bitcoin (BTC), according to blockchain analytics company CryptoQuant.
After two months of trading between $16,000 and $17,000, the price of bitcoin is again back in the green. It is now trading at $21,188 after increasing by 2% over the previous 24 hours and by more than 23% over the past week.
A continuous upturn in the cryptocurrency market has led international investment company SkyBridge Capital to forecast that Bitcoin would hit the $35,000 price level by the end of 2023.
Anthony Scaramucci, the founder of SkyBridge Capital, acknowledged that this viewpoint was “overly bullish” but claimed that the upcoming “halving” of bitcoin occurs every four years and reduces the number of new bitcoins released by half.
Scaramucci allegedly said, “SkyBridge is going to have a great year if bitcoin could trade back to $35,000,” during the Reuters Global Markets Forum in Davos, Switzerland.
Bitcoin is now trading at its greatest levels in more than two months, yet “bull trap” is the term on every trader’s lips. Despite providing 25% profits in a single week, BTC/USD is still viewed with scepticism by many who survived the Bitcoin down market.
Crypto Everyone, from experienced traders to crypto newbies, is commenting on the latest price movement on Twitter. While some are somewhat pessimistic, others call it a bull trap. To gauge the current market mood, we look at some of the tweets that are trending.
Since the event effectively slows down the quantity of BTC entering the market, historically, Bitcoin halving has been followed by periods of higher prices. It is impossible to predict with certainty when the next halving will take place, although May 2024 is a likely timeframe given by experts.
One of the few investing companies, SkyBridge, has put money into cryptocurrencies like Bitcoin, Ethereum, Solana, and others. To offset projected 2022 losses, the corporation also intends to participate in the structured credit market.
Structured credit, securities backed by mortgages, credit card debt, and vehicle loans are once again viable investment opportunities, according to Scaramucci. His company controlled $2.2 billion as of September of last year, including $800 million in investments involving digital assets.
In a different interview with CNBC, Scaramucci referred to 2023 as a “recovery year” for Bitcoin and claimed that in two to three years, the leading cryptocurrency might reach $50,000 to $100,000. He stated:
“You are taking a risk, but you also believe in adopting [bitcoin]. Therefore, if the adoption goes well, as I think it will, this could easily be a $50,000 to $100,000 asset over the next two to three years.”