After breaking $10,000 for the first time in over a year, Bitcoin has now sped past the $11k mark, according to Coin360.
Trading #Bitcoin – FOMO is Upon Us, $10k Gone in Blink of an Eye… Now at $11k… What do Charts Say… & should have Q&A time from @PorcFest https://t.co/4dbbCRLcUc
— Tone Vays (@ToneVays) June 22, 2019
“We’re due a significant correction”
At the time of writing, it is up 12.81% on the day and trading at $11,063. And it gets better…’FOMO’ could take Bitcoin from $9,000 to $20,000 within months, Fundstrat Global Advisors Co-founder Tom Lee told CNBC this week. “I think it is easily going to take out its all time highs,” he declared.
Not everyone is getting out the party balloons and champagne, however. “I’m still not sold on the idea that it’s up, up, up from here,” says Simon Peters, Analyst at eToro. “We’re due a significant correction still and prices could fall back to as low as $6,500 before the next major rise. That said, you can’t ignore the continuing price surge we’ve seen this year.”
As for the latest rise, global politics could be one reason, Peters reckons. “It’s busy out there with the US-China trade war rumbling on, a new Prime Minister on the way in Britain and protests in Hong Kong. Some investors will naturally be spooked and are seeking a safe haven in assets like crypto. Bitcoin’s price may have also been boosted by Tether ‘printing’ another $150 million, which has historically been associated with a bump in crypto prices,” he concludes.
George McDonaugh, CEO and Co-Founder of KR1, also advises caution, “On the long way up to $20,000 there were five moments where there was a 40% decrease in price. These shake-outs test your staying power and many new entrants will hand their precious coins back to the market,” he says.
“We will see huge corrections again, and passing 10k may well be the catalyst that drives us back down, but whatever happens, we’ve been clearly shown that the interest, adoption and money has not in any way left this new asset class.”
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.