The post Bitcoin Expected to Revisit $50,000 in September-October, Aiming for $100,000 Next appeared first on Coinpedia Fintech News
Florian Grummes, Managing Director of Midas Touch Consulting, recently weighed in on the current trends influencing Bitcoin’s market. In an interview with David Lin, he explained two important factors shaping the sector: the Mt. Gox repayments and Germany’s recent Bitcoin liquidation.
Mt. Gox, the infamous Bitcoin exchange that went bankrupt a decade ago, is set to begin repaying its creditors in July. This process involves disbursing over 140,000 Bitcoin, a substantial influx into the market. While the sheer volume of these repayments could potentially impact Bitcoin’s price, the immediate effect seems to be subdued, with Bitcoin’s value continuing to rise.
The discussion also addressed Germany’s decision to sell its entire Bitcoin holdings. Despite the German government’s significant move, which could have been expected to exert downward pressure on Bitcoin’s price, the market’s reaction was surprisingly resilient. Bitcoin’s value actually increased post-sale, suggesting that the market may have already factored in or absorbed the impact of this sale.
Grummes expressed skepticism about the German government’s decision, suggesting it might stem from a lack of understanding of Bitcoin’s value. He said that while the sale did cause some short-term market turbulence, Bitcoin managed to rebound once the selling pressure subsided.
Looking ahead, Grummes anticipates that the upcoming repayment event could create additional volatility. Historically, such large-scale Bitcoin releases have led to price declines as recipients of the funds may quickly sell their assets. Grummes predicts that Bitcoin could experience a dip, potentially falling to the $50,000 to $55,000 range by September or October.
He believes that this potential dip could set the stage for a major rebound, positioning Bitcoin for significant gains later in the year and into 2025. According to Grummes, a bottoming out around these levels could provide a strong foundation for Bitcoin to eventually reach the $100,000 mark.
“I could imagine that we’re going to see 50 to 55k again, and then maybe that’s the range where Bitcoin will bottom out. We will have a double low, and that’s basically a good foundation to stand on and then start the real push to 100k later in the year and into next year,” he said.