Bitcoin's recent bounce at $25,000 sparks debate among experts
In the latest episode of The Market Report, Cointelegraph analyst Marcel Pechman examines Bitcoin's recent jump to $25,000 and whether it presents a buying opportunity. However, Pechman points out that Bitcoin's correlation with the U.S. Dollar Index has only been consistent 40% of the time, suggesting that it may not be a reliable indicator of price movements.
Investors' "apathy" contributes to low BTC trading volume
A recent Glassnode report reveals that the amount of Bitcoin being exchanged is at its lowest level since October 2020. This is attributed to investor "apathy" and "exhaustion." Pechman believes that the continuous regulatory actions against Coinbase and Binance by the SEC have left bulls feeling weary. Given the current risk-reward ratio, Pechman disagrees with the notion that the $25,000 price level is an attractive buying opportunity.
Expert analysis on BTC hitting $100,000 in 2024
Analyst Davis Hui, VP of Bitcoin miner Canaan, predicts that Bitcoin will reach $100,000 by 2024, citing the halving and the approval of a spot exchange-traded fund (ETF). However, cautionary points are raised by Pechman. He reveals that a significant portion of BlackRock's assets are tied up in fixed-income investments and other ETFs, making it unlikely that the full $10 trillion will flow into Bitcoin. Pechman also suggests that current holders may be tempted to sell their positions at previous price levels if Bitcoin were to surge, making supply unpredictable. Additionally, he notes that the SEC's concerns regarding stablecoin trading volumes and unregulated offshore exchanges have not been addressed, casting doubt on the possibility of a spot Bitcoin ETF.
Disclaimer: This article is for general information purposes only and should not be considered legal or investment advice. The views expressed are solely those of the author and do not necessarily reflect the opinions of Cointelegraph.
