The impressive rally witnessed by Bitcoin since the first quarter of 2020 has raised its prospects even further and now crypto enthusiasts are looking at a new milestone – $100k.
Whether that can be achieved by the end of 2021 depends on several factors, including regulation, technical developments, and new flows generated by either the retail or enterprise sector.
Managing to reach such a major figure would be a confirmation of the BTC’s growth potential, as well as its increasing demand, which means a growing number of people view digital assets as part of the future.
However, the short-term Bitcoin picture is again clouded by uncertainty, in particular, due to a regulatory crackdown.
Bitcoin weakens after intensifying regulatory pressures
A new wave of volatility occurred after China announced all crypto-related activities as illegal inside the country. Before that, Bitcoin had been recovering from the lows, but all gains were wiped out within a few hours.
As the country with the largest population on the planet, China is in charge of a large share of the cryptocurrency market, which explains why its government’s decisions can affect the digital token’s value so much.
Now that citizens are increasingly discouraged by the government, the bid for these assets has been weakened. Bitcoin trades at around $42k at the time of writing and judging by the price action context, it might be poised for a further downside.
The list also includes positive news for Bitcoin, such as the favorable seasonality that has been noticed over the past few years. With such a mixed picture in sight, market participants need a solution to take advantage of price movements, regardless of whether Bitcoin reaches $100k or not.
How can people take advantage of market volatility?
A solution for that is Coinrise, a provider covering a wide range of cryptos – including BTC – promising swift trade execution, low transaction costs, and the ability to either buy or sell short, depending on how market conditions are changing.
With Coinrise, retail traders interested in Bitcoin trading have a solution to the elevated market uncertainty. They no longer have an upside bias and can use a wide range of tools, including a customized trading platform, accessible via a browser on any type of device.
For traders who want more details about the offer, the best thing to do is talk to a Coinrise representative. The company has a dedicated support team, available throughout the week, who can provide information and also solve technical difficulties if they arise.
Is the current Bitcoin selloff an opportunity for long-term buyers? In case October comes with better price developments, that might be the case. However, seasonality requires traders to think in probabilities and remain open to any outcome.
Based on how prior cycles have unfolded, Bitcoin has the potential to reach $100k. It would be fair to assume, however, that the current market sentiment adds further doubt to the ability of Bitcoin to go that far.