What Next for Bitcoin in the Crypto Markets?
The overall mood in the crypto markets is one of optimism brought about by the mentioned news of PayPal providing crypto services to its users.
Furthermore, the legendary Macro Investor, Paul Tudor Jones, told CNBC’s Squawk Box that he now liked Bitcoin more than he did when back in May when he announced his investment in BTC to hedge against inflation. Mr. Jones went on to add that Bitcoin could very much ‘be in its first inning and has a long way to go’.
I like bitcoin even more now than I did then. I think we are in the first inning of bitcoin and it’s got a long way to go.
The reason I recommended bitcoin is because it was one of the menu of inflation trades, like gold, like TIPS breakevens, like copper, like being long yield curve and I came to the conclusion that bitcoin was going to be the best inflation trade.
His words can be interpreted to mean that the value of Bitcoin in the long term is destined to go higher given the prospects of inflation. Therefore, the estimate provided by Bloomberg of Bitcoin at $100k by 2025 might very much become a reality.
- The chance of Bitcoin hitting $20k or higher by the end of the year currently stands at 7%
- This is a 2% increment from the 5% probability witnessed back in late June
- Bitcoin’s open interest on major exchanges such as Binance has seen a significant increment in the last 48 hours
- Bitcoin bull run is finally here with Paul Tudor Jones stating that he likes BTC even more
The probability of Bitcoin hitting $20k or higher by the end of the year now currently stands at 7%. This value is 2% higher from the 5% chance of Bitcoin achieving a similar feat that was recorded back in late June. The increased probability of Bitcoin matching its all-time high set in 2017 was highlighted by the team at Skew via the following tweet.
#bitcoin probability > $20k at year-end repricing quickly, now 7% pic.twitter.com/jNm5t9QPbs
— skew (@skewdotcom) October 22, 2020
14% Chance of $20k by March 2021 and 18% Chance by June 2021
Further visiting the Skew analytics website reveals that the chances of Bitcoin hitting $20k by March 2021 increase to 14%. The odds further increase to 18% when the timeframe to hit $20k is extended to June 2021.
Bitcoin Future’s Open Interest Continues to Increase
Another Bitcoin metric worth highlighting is BTC’s open interest on Binance that has increased by $150 million in two days. This feat was captured yesterday by the team at Glassnode via the following tweet.
Open interest on #Binance increased by $150 million in the past 48 hours (+30%) and is currently sitting at $637 million.#Bitcoin
Live chart: https://t.co/3YHVhcFm59 pic.twitter.com/grxo0fCQtX
— glassnode (@glassnode) October 21, 2020
This increment coincides with Bitcoin breaking $12k and the subsequent news of PayPal announcing that it will start offering crypto services to its users. The increased open interest indicates that crypto traders are once again enthusiastic about Bitcoin after what looked like an uncertain future due to the possible negative impact of the US elections on November third.