Bitcoin (BTC) could recover and reach new highs in 2023 according to Mark Palmer, a recognized analyst at BTIG. This cryptocurrency analyst has a bullish position on Bitcoin as he considers that the virtual currency could eventually hit $95,000 by the end of the year, according to MarketWatch. This comes after a strong sell-off in the cryptocurrency market that pushed Bitcoin and other virtual currencies lower in recent months.
Could Bitcoin Surge to $95,000 by the End of this Year?
With the cryptocurrency market moving lower in recent months, everyone thought that we were entering a new bear trend that could last several years. However, some analysts suggest that the largest cryptocurrency in the market could surge to $95,000 by the End of this Year.
According to Mark Palmer, the managing director of BTIG, they have a bullish outlook for Bitcoin in 2022. Nevertheless, he said that they acknowledge that MicroStrategy has taken a massive unhedged long position on a speculative and volatile asset such as Bitcoin.
“We fully acknowledge that MSTR, which last August became the first publicly traded U.S. company to adopt bitcoin as a Treasury reserve asset, has taken a massive unhedged long position on a highly volatile speculative asset,” he wrote.
He has also mentioned that those investors that place their funds on MSTR should know that they are also going to be investing in a stock that is correlated with Bitcoin and its price. Let’s not forget that MicroStrategy was one of the first companies in the world to add Bitcoin to its balance sheet.
According to Bitcoin Treasuries, MicroStrategy holds 129,218 BTC, equal to 0.615% of the total Bitcoin supply. Let’s not forget that there will only be 21 million Bitcoin in existence. Therefore, large companies and investors are staking BTC as they know that their investment could become very valuable in the future if Bitcoin becomes adopted by a larger number of companies and institutions.
Back in 2021, Bitcoin hit a price per coin of $69,000, as reported by CoinMarketCap. Then, Bitcoin entered a bear trend that pushed the price of this digital currency below $18,000 for a short period of time in mid-June. This shows that there has been strong selling pressure in the market for several months now.
Mark Palmer’s Bitcoin prediction at $95,000 seems to be quite risky. Nonetheless, we know that Bitcoin could move higher very fast when people do not even think about it. Let’s not forget that in December 2017, Bitcoin surged from $3,000 to $20,000 in just a matter of weeks. Then, the market tanked and Bitcoin hit $3,200 a year later.
At the time of writing this article, Bitcoin is being traded at $21,000 where the digital currency seems to be finding strong resistance. Despite the fact that it tries to break higher, sellers appear and push the price of Bitcoin below this important resistance level. It would be just a matter of time to see how Bitcoin evolves and whether it hits $95,000.