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Canaccord Analysts See Bitcoin Climbing Back To $20000 In 2 Years

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A research paper by investment banking firm Canaccord Genuity said that Bitcoin price will return to its all time high levels of around $20000 in two years.

Analysts at Canaccord Genuity say they have reached this conclusion noting the striking similarity in bitcoin's price action between two four-year periods of 2011-2015 and 2015-2019.

"Bitcoin has started to form the spring 2019 bottom we began mentioning last year, although a close look at the chart suggests the recovery may be slightly ahead of itself", analyst Michael Graham and associates Matthew Volpe and Alexander Frankiewicz at the Canadian financial services company said.

"Looking ahead, if bitcoin were to continue following the same trend, the implication is a slow climb back toward its all-time high of $20,000, theoretically reaching that level in March 2021", according to them.

The direction of Bitcoin price movement from the beginning of this year, especially in the last two months, strongly vindicates this view.

Bitcoin is on a strong recovery path from its 2018 lows, and has broken another important benchmark by shooting above $8000 Monday.

Bitcoin is up over 140 percent from the 2018 lowest price of 3217 reached last December.

Renewed interest in the most popular cryptocurrency is also obvious from the record trade volumes and market capitalization seen this month.

According to the research, a long-term recovery has begun in April-May, which will be followed by a very slow climb back to old highs in March 2021.

The analysts point to increased Wall Street interest in cryptocurrency as one of the catalysts for bitcoin's recovery.

Another reason cited is US investment management company Fidelity's continued push into the space. After the launch of Fidelity Digital Assets in last October and a custody service in March, many reports suggested Fidelity will soon launch an institutional digital assets trading business.

A survey of 411 US institutional investors found that 40 percent of them are open to owning digital assets within the next five years.

Another factor may be Grayscale's "Drop Gold" advertising campaign, which targets digitally native investor base that may prefer bitcoin to gold as a non-government store of value investment.

Canaccord analysts also cited recent crypto initiatives from corporates including Facebook and Nike.

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