31.08.202011:31 Forex Analysis & Reviews: Bitcoin is back on the swing: what will happen to the cryptocurrency rate?

The speech by Fed's Chairman, Jerome Powell, led to fluctuations in digital currency markets. The bitcoin rate fell by almost 2% - to $ 11,200, after inflation was allowed to grow stronger than usual (in order to support the labor market and the economy as a whole).

It is significant that just the day before, several influential analytical centers published their price forecasts for the main cryptocurrency. And most of them were more than optimistic. More often than others, the figure was $20,000, but some experts have already started talking about $500,000.

Positive outlook

Earlier this week, Bloomberg analysts were among the first to share their thoughts. They said that more and more institutional investors are considering cryptocurrency as a protected asset. Accordingly, the price of bitcoin will continue to grow and may exceed last year's maximum of $ 14,000 at some points.

Some experts believe that the most popular cryptocurrency this year has every chance to step over the $ 15,000 mark. However, further market behavior depends on whether Bitcoin can update its historical maximum or not. In the first case, they predict a rapid price increase to $ 30,000, while in the second, a stop at $ 15,000- $ 20,000 for several years.

On the other hand, the Winklevoss brothers from Winklevoss Capital turned out to be the boldest of all. They criticized the way the Fed is responding to the economic crisis and gave a negative outlook for the dollar. They also wrote that gold and bitcoin remain reliable havens, but the metal has more disadvantages. This is a complex portability, the possibility of confiscation, and uncertainty about the volume of supply. If Central banks even partially use bitcoin in Fiat reserves, the cryptocurrency rate can grow as much as $500,000 per coin.

Skeptics' opinions

Against this background, the statements of other analysts looked strange. They said that the strength of the "bulls" is declining and the market will gradually slide to the level of $ 10,800. If this level is reached, we can expect bitcoin at $ 6,000 next year.

Moreover, Seeking Cryptos' Marc Principato drew attention to the fact that recent rate fluctuations have been taking place in a rather narrow range ($ 11,120-11,700). According to the analyst, if it managed to break through the upper border of this range, then the cryptocurrency will easily consolidate above $ 12,000. Otherwise, we will see strong support only at the $ 10,500 mark.