This week has been a big one for Bitcoin.
The price of the world’s largest cryptocurrency by market capitalisation soared 20 percent in under an hour on Tuesday.
Following a period of time in bear territory, there is a mounting sense that Bitcoin is back.
So much so, I’m calling that the cryptocurrency market has bottomed, and the crypto winter has reached its end.
It’s my view that Bitcoin will now move up over the coming weeks and months, leading to steady gains for investors. With Bitcoin being the largest digital currency by market cap, this will have a positive effect on prices in the broader digital currency sector.
In the early of hours of Tuesday, London time, the price of Bitcoin surpassed the $5,000 mark, the highest point since November last year. Other major cryptocurrencies, such as Ethereum, XRP and Litecoin have experienced gains of around 10 per cent.
As such, this remarkable leap could potentially attract a large number of investors who have been waiting on the side lines.
Furthermore, it will likely rekindle institutional interest.
At the end of last year, I was quoted saying Bitcoin and other leading digital currencies were on the verge of a global breakout, predominantly due to "FOMO," or the fear of missing out.
Indeed, cryptocurrency adoption is continually increasing. This is indicated not just in the financial sector – with major banks looking toward crypto and blockchain more and more – but also some key names within the technology and retail sector as well.
There is a rising perception amongst institutions that unless they truly embrace crypto and get behind the sector, their competition could advance, move out in front, making it incredibly tough to catch up. Of course, this is certainly the case as their customers are becoming increasingly keen to consider cryptocurrency opportunities.
As it stands, it is now widely regarded that cryptocurrencies are inescapably the future of money, and right now the environment is right for a prolonged rise in prices.
Therefore, I believe we could realistically see the price of Bitcoin reaching $7,000 over the next few months.
Nigel Green is founder and CEO of deVere Group. One of the world’s largest independent financial advisory organizations, de Vere does business in 100 countries and has more than $12 billion under advisement.
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