Bitcoin (BTC) could continue moving higher according to Marion Laboure, financial analyst at Deutsche Bank. The largest cryptocurrency in the world has been in a bear market since November 2021 and the trend does not seem to be changing. However, this analyst believes that Bitcoin price could continue growing in the future depending on what people consider that this virtual currency is worth.
Bitcoin Could Continue Moving Higher
Despite the last six months for Bitcoin, the virtual currency could continue growing in the coming years. According to Marion Laboure, people are the ones giving value to Bitcoin and those that could push the price of this virtual currency higher. During an interview, she compared Bitcoin to diamonds and how their price grew over the last 50 years.
Laboure explained that it is difficult to understand Bitcoin’s value. Indeed, there are some things that exist only because people believe in these things. Therefore, Bitcoin could only continue existing as long as the market believes in the solutions it offers and the value that it adds to the entire monetary and financial systems.
During the conversation, she said that there are four things to take into consideration about Bitcoin’s price that could determine the value of this virtual currency. Psychology is one of the most important factors, as the price of this virtual currency (and also many others) is affected by what people believe and think about it.
Another thing that is worth taking into consideration and that has a strong impact on Bitcoin’s price is the total supply of this virtual currency. Let’s not forget that BTC has a total supply of 21 million BTC and that will never change. Therefore, this shows that there is a strong incentive for users to hold BTC and wait for its price to appreciate as demand grows. More than 90% of these 21 million are already circulating. 900 BTC a day are added to the market.
Regulations could also have an effect on Bitcoin’s price. A cryptocurrency market that follows clear regulations and that helps investors protect their funds (avoiding projects such as Terra (LUNA)), could be a positive thing for the whole crypto market. When LUNA tanked and Terra USD (UST) lost its peg, Bitcoin and other virtual currencies also moved lower.
Finally, Laboure talked about financial literacy and how this could have an impact on Bitcoin and digital currencies. For example, Bitcoin courses have started to grow in El Salvador where Bitcoin was made legal tender. This allows people that never had contact with the digital asset to start learning about it. It is very important to make a distinction between Bitcoin and its value proposal compared to other digital currencies and their role in the cryptocurrency market.
At the time of writing this article, Bitcoin is being traded for close to $28,900, according to data shared by CoinGecko. Furthermore, BTC has a market valuation of $550 billion and it has remained relatively stable in the last 24 hours.