Bitcoin (BTC), the largest cryptocurrency in the market, has been growing during the last few days after a small price drop below $6,000. However, some experts are already starting to talk about a Bitcoin above $9,000 by the end of the current month. One of these experts is Su Zhu, the CEO and CIO of the fund management firm Three Arrows Capital.
CEO of Three Arrows Capital Says Bitcoin Could Surpass $9k in January
In a recent tweet published by the CEO of Three Arrows Capital, Su Zhu, BTC/USDT premiums and price action show that there are clear signs of accumulation and money flowing back into risk. USDT is the ticker of the Tether stablecoin, which has a price of ~$1.
BTC premiums could be very positive for Bitcoin considering that large positive USDT price premiums could signal an imminent price increase in Bitcoin. The contrary would happen if there is a negative premium in USDT markets with Bitcoin. If that happens, Bitcoin prices could fall.
Bitcoin and other cryptocurrencies have been traded in a bear market since June 2019 and many altcoins have been reaching new lows in the last few months. This was clearly very bearish for the whole market considering enthusiasts were waiting for the whole market to move higher as it did during the first part of 2019.
However, Su Zhu believes that Bitcoin could end this first month of 2020 with a price per coin of $9,000 or even more. This would represent a price increase of around 20% considering that Bitcoin is currently being traded close to $7,550.
BTC/USDT premiums and price action show clear signs of accumulation and money flow back into risk.
Would not surprise me to see 9K+ before end of Jan.
— Su Zhu (@zhusu) December 28, 2019
It is also worth pointing out that Bitcoin is going to experience a halving event as soon as in May this year. This is also expected to be very bullish for Bitcoin, which has experienced two halving events in the past years. Halving events reduce the new issuance of Bitcoin by half, meaning this year there are going to be fewer Bitcoin created than the last year.
Miners will be rewarded 6.25 BTC per block compared to 12.5 BTC per block they are currently receiving. These halving events take place every four years and are considered to be one of the most important characteristics of this cryptocurrency. The halving events will take place until all the 21 million BTC are eventually mined.