At the time of writing on Sunday evening, one bitcoin is trading at $23,738. That’s a 43 percent increase year-to-date, and it’s shaping up to be the best January for cryptocurrency in a decade.
However, it is still far from the October 2021 peak of $61,837.
The appetite is back
Torkel Rogstad is a bitcoin expert and co-founder of the bitcoin broker Bare Bitcoin. He says that the price of bitcoin is very volatile and points to two factors combined as the reason for the development we are seeing now.
Torkel Rogstad in Bare Bitcoin. (photo: private)
– In the summer and fall of last year, everything that could go wrong went wrong: “everyone” was a fraud, plus large and reliable companies failed. Perhaps the market overreacted to this bad news.
– The second explanation is rather boring, which is the general macro picture. Certain signals from central banks have a huge impact on something as speculative as Bitcoin.
In addition, he says that January this year stands out in that bitcoin has done particularly well on the weekends.
– When the rest of the market is closed, Bitcoin is doing relatively well, which may indicate a return to risk appetite.
I believe in a new Supreme List
– Are you positive about further development?
– In the long run, I’m undeniably positive. The central bank’s credibility has declined in light of the high inflation rates.
In the short term, Rogstad says it’s “impossible to think of anything sensible,” but in the future he’s a faint optimist.
– I would be very surprised if in 2024 Bitcoin did not start to inhale the previous highs of between $60 and $70,000. In five to 15 years, I think the value could be in the hundreds of thousands of dollars.
When you hit an absolute bottom, it can only go one way, he says.
Bitcoin is a game
Nordea Chief Investment Officer Robert Ness also points to the volatile nature of bitcoin and the market’s willingness to take risks as important reasons for the rally in January.
– Nothing special happened to explain the height. There has been no fundamental change in the cryptocurrency market.
Robert Ness, Chief Investment Officer and Principal at Nordea. (Photo: Evind Senst)
At least before Christmas, Ness was out with one supports In DN he warned against investing in cryptocurrency. He’s done that many times before.
In addition to bitcoin, Næss says, the market has sought more towards riskier investments, such as technology and growth stocks.
So is it a coincidence that this is the explanation behind the rise of Bitcoin?
– Yes, there is a greater willingness to take risks, which you can also see in Tesla share prices. There are no new uses for bitcoin or new information to explain the rally.
There is no simple explanation as to why the market is willing to take risks, but it is a new year and many see it as a time of new opportunities.
The investment manager believes that due to the fluctuations in the Bitcoin exchange rate, it may reach $25,000 within the next week.
I think bitcoin will go to zero
On the other hand, Næss believes that the bitcoin exchange rate will drop to zero in the long run.
—but there’s a lot that can happen on the way to zero, and no one should ignore the fact that the value can double on the way down.
Bitcoin does not move the world forward, it is not something you need. It is a game for anyone who wants to trade.
– Torkel Rogstad believes that the price of bitcoin in five to 15 years could reach several hundred thousand dollars. What do you think that?
Bitcoin mining and mining requires massive resources. I think it’s virtually impossible for a cycle to reach these levels, says Ness.
The general rise of cryptocurrencies
news channel CNBC Recently highlighted the growing interest in bitcoin investing in the United States.
“Bitcoin appears to be trading in line with Nasdaq and risk assets again, after the past few months of outage,” Silvia Jablonski, chief investment officer at Defiance ETFs, told CNBC.
This is good news for cryptocurrency investors in the sense that if inflation slows and the Fed approaches peak interest rates, it will give risky assets breathing room. This, in turn, may attract investors back into the market.(Conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We’d like you to share our statuses using links that lead directly to our pages. Reproduction or other use of all or part of the Content may only be made with written permission or as permitted by law. For additional terms look here.
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