Bitcoin, the most well-known asset in the cryptocurrency world, has recently exhibited a remarkable rise. This rise has created great excitement among the Bitcoin community and investors. However, there are many different opinions about what this rise means and the future performance of Bitcoin. One of the people who expressed their opinion on this issue was Jamie Coutts, known as a crypto analyst at Bloomberg. Coutts said Bitcoin’s recent rise indicates that the crypto king is now in a bull market cycle. So, what does this analysis mean?
Jamie Coutts says Bitcoin’s latest rally is comparable to its 2020 move told. During this period, Bitcoin paved the way for a major upward trend. The year 2020 was one of the turning points for Bitcoin. The COVID-19 pandemic and global economic uncertainties have led many investors to choose Bitcoin in search of a safe haven. During this period, the price of Bitcoin increased rapidly and many individuals and organizations increased their interest in cryptocurrency.
“What Bitcoin price action has done this week from a technical perspective is equivalent to the break above the $10,500 resistance in July 2020. The price eliminated a massive oversupply, the largest in its history.
“While there may be pullbacks like we saw in the third quarter of 2020, the price confirms the bull market regime I outlined in December 2022 based on my analysis of liquidity and market structure.”
Additionally, according to Coutts, the growth of crypto users could increase by approximately 1900% by 2028, thanks to stablecoin adoption, tokenization of real world assets, and the potential implementation of account abstraction.
The analyst predicts that traditional financial institutions that were once skeptical of the industry will be forced to change their tune next year. He explains why:
“You will see one of the biggest financial market transformations of the last century as TradFi (traditional finance) companies that hit rock bottom reverse course in 2024. As Bitcoin looks to its throne as the next global reserve asset, pension and fund managers are clinging to their ‘risk-free’ positions.
U.S. Treasuries are being forced to relearn the basic principles of risk management, diversification and position size as they are introduced to the inescapable realities of fiat finance. Tokenization of real-world assets, account abstraction, and the rise of stablecoins are about to take crypto from five to 10 million daily crypto users to 100 million by 2028.”
Bitcoin is trading at $34,103 at press time.
You can follow the current price movement here.