Bitcoin Price is Likely to Break Psychological $50K Soon
Bitcoin (USD-BTC) price cruises to a new all-time high of $48600 level in Thursday trading but failed to breach the $50K resistance level and fell back to the $47K range. However, the market fundamentals suggest $50K is just a near-term Psychological mark as the largest cryptocurrency is set to generate massive gains this year.
The most valuable cryptocurrency gained more than 60% since the start of the year after quadrupling in value last year. Bulls are optimistic over the adoption rate and they have aggressively been capitalizing on positive reports.
Citi analysts anticipate Bitcoin price to reach $300,000 at the end of this year while JPMorgan says Bitcoin has more upside potential ahead.
Bulls are Capitalizing on Bitcoin Adoption
The latest rally is driven by the announcement of providing custody services by Bank of New York Mellon. Roman Regelman, CEO of asset servicing and head of the digital at BNY Mellon, said in a statement Thursday:
BNY Mellon is proud to be the first global bank to announce plans to provide an integrated service for digital assets,”
Prior to a bullish news report from America’s oldest bank, Mastercard has also announced to offer support for some cryptocurrencies on its network this year. Early this week, the world’s largest electric vehicle maker Tesla (NASDAQ: TSLA) announced a $1.5 billion investment in bitcoin and accepting the digital coin as a valid mode of payment for its products.
The market pundits are anticipating tech giants like Apple (NASDAQ: AAPL) to offer crypto exchange service in their app, which they believe would skyrocket the valuations of these assets.
RBC analyst Mitch Steves said:
To put some numbers around this, Square generates ~$1.6B/qtr in bitcoin-related revenue on an active install base that we estimate to be in the ~30M range. Apple’s install base is 1.5B and even if we assume only 200M users would transact, this is 6.66x larger than Square.”