When Bitcoin surged to over $60,000 a few months ago, the rally stalled. This is a technical red flag that led to accelerated selling pressure. Bitcoin tried but failed, to break out above $50,000.
$100,000 is a convenient six-figure milestone for the cryptocurrency. When will it get there?
Crypto investors cannot predict when Bitcoin will rise to that level. Instead, Bitcoin’s direction is up, with extreme volatility. To get there, it must overcome a few headwinds. First, new crypto buyers need to expect wide price movements to continue. Companies like Block (SQ) are accepting the crypto coin as a means of exchange.
Crypto platforms are getting more popular. Coinbase (COIN) is educating investors about Bitcoin and the various cryptocurrencies. Fintech firms like Robinhood (HOOD) and SoFi (SOFI) are introducing crypto wallets. Established financial institutions are not entering the space yet. If they do so, it would recognize Bitcoin as another way to facilitate transactions.
Regulatory Risks
Governments are studying the role of Bitcoin in society. If they introduce regulations, it may slow the adoption of cryptocurrency. This would delay Bitcoin’s rise to $100,000.
Bitcoin’s downtrend is pricing the regulatory risks ahead. Investors should continue watching the prices for a chance to build a small position at better prices.
