Bitcoin and Crypto Market Analysis: What’s in store for BTC this week?
Bitcoin seemed to virtually fly along on a rocket from Elon Musk on Friday. The cryptoasset surged 20% to $38,000 as the world’s richest man added #bitcoin to his Twitter bio and a record number of options contracts expired. However, BTC drifted back to earth.
This wild rash ended an otherwise relatively quiet week in the cryptoasset market. Bitcoin drifted mostly sideways as a report revealed that Ivy League universities Bitcoin Up have been accumulating cryptoasset, while Stellar, EOS and other altcoins made double-digit gains.
- Ray Dalio talks about bitcoin
- Gamestop saga puts crypto in the spotlight
Once again, a crypto-sceptic has changed his mind about Bitcoin. This time, billionaire and Wall Street legend Ray Dalio.
„I think Bitcoin is a damn good invention,“ the former doubter said in a post on LinkedIn, before concluding that the cryptoasset „looks like a long-dated option on a highly unknown future.“
In the same week, two other high-profile figures had made similar comments. VISA CEO Alfred Kelly said the company was „uniquely positioned to help make cryptoassets more secure, useful and applicable for payments“. Billionaire Mark Cuban wrote on his personal blog that blockchain-based assets „have now legitimately become store of value.“
Gamestop saga puts crypto in the spotlight
Chaos hit the US stock market this week when subreddit group WallStreetBets coordinated a 700% rally in GameStop’s share price, forcing hedge fund Melvin Capital to close its short position at a loss of billions.
In response, many trading apps suspended their functionality – further fuelling the turmoil as traders sought alternative ways to buy and sell.
Industry commentators took this as a positive omen for decentralised assets. Anthony Scaramucci of SkyBridge Capital told Bloomberg that it was „further proof of the concept that bitcoin will work“. Anthony Pompliano told CNBC that the events will serve to „accelerate the digital decentralised financial system.“
Looking ahead, Wall Street-inspired upheavals could be in store for the crypto market. Crypto forums on the online forum Reddit have grown 500% in the past week.
On Wednesday, another potential catalyst could move the market as thousands of corporate leaders gather for Michael Saylor’s virtual „Bitcoin Corporate Strategy Summit“. This is designed to help other companies follow MicroStrategy and add Bitcoin (Go to Buy Bitcoin at eToro guide) to their balance sheets.