Bitcoin enters a two-year bullish cycle
According to Jan van Eck, CEO of cryptocurrency fund VanEck, the demand for Bitcoin and gold will continue to grow because of problems in the U.S. banking sector. In his opinion, Bitcoin and gold are now at the very beginning of a rising movement, a bullish cycle that could last at least two years.
He believes that the U.S. Federal Reserve will soon be forced to stop raising interest rates because it is causing negative consequences for the global economy. The CNBC interview where he stated his position is interesting in that the bull cycle may last at least two years.
What is the basis for the prediction that the price of Bitcoin and gold will rise within two years?
Jan van Eck believes Bitcoin and gold are rising in price for the same reasons, as investors are turning to them to hedge their portfolios. Speculators have left the market for both assets. The businessman is confident that once the Federal Reserve begins to pursue a looser monetary policy, the price of Bitcoin will rise as markets fill up with more liquidity.
He also admits that there could be minor corrections in the value of Bitcoin, as well as gold, and there could be sideways movement in the price of Bitcoin.
For example, data and TradingView showed yesterday that the price of Bitcoin is trading below the $28,000 mark. The day before, the Bitcoin price approached $29,000, absorbing demand liquidity. Bitcoin was never able to surpass the $29,000 mark.
Therefore, the above forecast of the businessman may remain just another forecast, of which there were many over the past few months.
At the moment, there are no fundamental factors that would cause Bitcoin’s price to rise to the $30,000 mark. Most likely, the price of Bitcoin will remain in the existing corridor. This is the Bitcoin forecast for the near term. However, there is a chance that Bitcoin may still show a better result in April than in March.