Bitcoin’s next test seen as $90,000 after US ETF debut, strategists say

There has been continued institutional investment in cryptocurrency assets and possible buying by bigger investors

Bitcoin has stalled out after reaching a record on Wednesday, but strategists are already setting out their stalls for how high the next rally will take it – $100,000 or only $90,000.

The digital currency is sitting in the low $60,000s as traders watch to see how the landscape shifts now the first US Bitcoin futures exchange-traded fund are in play.

The largest cryptocurrency was up 0.6 per cent to $63,077 as of 12.25pm in Hong Kong on Friday, after peaking on Wednesday at nearly $67,000.

The move into unprecedented territory had chartists looking for new target levels – not quite the $168,000 or $1 million seen by some enthusiasts, but still strongly bullish.

“Initial upside targets for Bitcoin above $65,000 lie near $72,500, then $89,000 and thought to be definitely within reach on this breakout of former peaks,” Fundstrat wrote in a report on Wednesday.

The last number would be a 100 per cent extension of the rally up from last March’s lows, it said.

Bitcoin reached its record amid anticipation of the US ETFs, as well as continued institutional investment in cryptocurrency assets, and possible buying by bigger investors known as “whales”.

There are plenty of people projecting a gain to $100,000 by the end of the year, including BitMEX chief executive Alexander Hoptner, who suggested that level in an interview with Bloomberg Television on Friday.

Updated: October 22nd 2021, 7:43 AM
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