“Though regulatory uncertainty in the U.S. and elsewhere remains, BTIG Strategy and FinTech [teams] see the long-term case for digital assets — the transformational power of blockchain, a store of value in an increasingly uncertain and inflation prone world — stronger than ever, and we reiterate our year-end 2021 price targets for bitcoin, $50,000, and Ether, $5,000 and would take advantage of the present weakness to add to core holdings,” penned BTIG strategist Julian Emanuel in a new research note to clients.
Reiterated calls such as this from BTIG are being well received by crypto watchers — at least in the short term — as some degree of stability has returned to the bitcoin market.
Bitcoin prices rose more than 15% over the weekend. At $34,514 as of Monday late morning, bitcoin prices have gained about 5% in the past 24-hours.
“The bounce is “positive”…but since it has only taken bitcoin back into the middle of its range…it’s not necessarily “bullish,” said Miller Tabak Chief Markets Strategist Matt Maley. In other words, the crypto bulls have got to be relieved that bitcoin did not drop below the bottom end of its range, but the rally has not been enough to give them any signals that it will break out to the upside any time soon.”
To be sure, the stability in bitcoin prices is fragile at best.
From the record highs of more than $63,000 in mid-April, bitcoin has shed nearly 50% (including a trip below the $30,000 level a week ago). The bitcoin downdraft has pressured shares of crypto exchange Coinbase (COIN) — the stock is down about 28% in the past three months.
Driving the price lower for bitcoin have been a multitude of concerns.
First, regulators in China continue their crack down on mining in the country. Two, negative tweets on the environmental impact of bitcoin mining from Tesla CEO Elon Musk haven’t helped bitcoin prices, either.
And finally, a more hawkish stance on interest policy from the Federal Reserve has dampened speculation in the crypto market.
“The crypto haters have enjoyed knocking the digital assets this week, but savvy investors aren’t spooked by the current volatility. They’re confident in their longer-term trajectory,” said deVere Group CEO Nigel Green.
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