bitcoin bottomed out and aims to quintuple in price, analyst says

Key facts:

The balance of BTC on exchanges has decreased 20% so far this year.

Bitcoin would have bottomed out, says analyst Willy Woo.

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Bitcoin registered a 6.7% boom last Sunday, April 4, in the last 7 days, amid a boost attributed to the support of financial institutions, such as Visa. On Monday 29, the price of BTC rebounded 3%, to approach USD 60,000 again and achieve the best historical appreciation of a month of March, since 2013.

An analysis by Ecoinometrics on how long it takes for bitcoin to double its price, commented this Saturday, April 2, affirms that, according to the recent trend, bitcoin would double its price in a few weeks and double again during the year.

Bitcoin closes the week with an appreciation of 6.7%. Source: CoinMarketCap.

For his part, analyst Willy Woo, in conversation with Peter McCormack, last Monday 29 updated the maximum price he had estimated for this cycle of bitcoin to USD 300,000. Woo assured that bitcoin would have already hit bottom and explained his trading strategy at the end of the bull cycle, the culmination of which could occur by the end of the year, according to the analyst.

As a sign that favors the upward momentum in the price of bitcoin, a Glassnode report, commented on Wednesday 31 by this means, affirms that BTC inventories in exchanges have continued to fall and have already declined 20% so far this year .

The rising trend of BTC inventories changed in March 2020. Source: Glassnode.

As of March 2020, the growing trend of BTC inventories on exchanges was interrupted, which would imply that investors, mainly the institutional ones, are safeguarding their funds in the long term.

Bitcoin attracts banking

The acceleration of the institutional investment curve in 2020 has also attracted major financial institutions in the United States and elsewhere. Most of them, however, changed their radical positions against bitcoin, before embracing different avenues to invest in the first cryptocurrency.

An example of this approach is offered by the oldest bank in the US, BNY Mellon, which published a report last month, commented on by CriptoNoticias, in which it analyzes various models of bitcoin valuation. On the other hand, the US investment bank, Morgan Stanley, updated its investment prospect in bitcoin before the Securities and Exchange Commission (SEC), and applied to 12 of its funds to include exposure to the first cryptocurrency.

CME launches bitcoin microfutures

The CME Group exchange will begin to offer new bitcoin microfuture contracts on May 3, with a value of 0.1 BTC, with which it wants to diversify its offer of cryptocurrency derivatives and reach a wider group of investors, such as was reviewed by this means. CME’s bitcoin futures contracts today can include 5 BTC, with a value close to $ 300,000.

Altcoins outperform bitcoin

Despite having risen 110% in the last three months, the so-called comparative index of the performance of altcoins against bitcoin, reveals that there is currently a season of dominance for altcoins. It is enough for 75% of the top 50 cryptocurrencies to outperform bitcoin for an altcoin season to be declared. Currently 89% of the major altcoins outperform bitcoin.

Featured tweet of the week

The returns of 1 US dollar in gold and in bitcoin. Source: @michael_saylor on Twitter.

MicroStrategy CEO Michael Saylor published on Wednesday the comparison of the returns on investment of US $ 1 in gold and in bitcoin over different time periods, from one month to 5 years.

In the last 30 days, the gold enthusiast would have lost 3 cents, compared to a gain of 17 cents for those who invested in bitcoin. Gold’s downside is widening over longer periods of time than in the last five years, bitcoin offers a return of $ 139.28 and gold keeps the gain in the range of cents. “Gold no longer works, Bitcoin broke it,” Saylor says at the beginning of the tweet.

PayPal activates payments with bitcoin

In an important extension of its services related to bitcoin (BTC), PayPal activated the payment function with BTC and other cryptocurrencies on its platform on March 30. This payment option is also available for litecoin (LTC), ether (ETH), and bitcoin cash (BCH). The service, limited to selected businesses, will be expanded to include the 29 million businesses present on that platform.

BlackRock’s bet on bitcoin

BlackRock, the investment company with the most assets under management in the world, acquired bitcoin futures contracts worth $ 6.5 million, according to documents published by the SEC. There it is revealed that one of the funds managed by BlackRock held 37 bitcoin futures contracts, with a total value of $ 6.5 million. The contracts expired on March 26 and appreciated by USD 360,458. Despite being a very small investment for this investment giant, which manages USD 8.67 trillion, it is a important testimony in favor of the institutional adoption of bitcoin.