This Catalyst Could Boost Bitcoin Past the $35,000 Level

Advertisement

Bitcoin (CCC:BTC-USD) has been getting hit from all sides lately. Chinese regulation of mining activities has negatively affected the price of BTC and so has negative press. Perhaps most recently, Doge co-founder Jackson Palmer came out of the woodwork and attacked the philosophy and purpose of cryptos.

A Bitcoin (BTC) coin surrounded by gold.
Source: Shutterstock

However, despite all of this, we think perhaps the biggest driver of the BTC selloff is a reduction in inflation expectations.

BTC Loses Its Edge on Inflation

Bitcoin prices soared at a time when inflation expectations were rising in February and March. During this time, investors saw Bitcoin as an alternative hedge against inflation.

But, as inflation expectations and bond yields have collapsed in recent months, so has the price of Bitcoin. All of the investors seeking to hedge against inflation by buying BTC have made their way to the exits.

Regardless, BTC shows strong support around the $29,000 level.

And the B Word conference, taking place today, is a huge catalyst. The conference features a live discussion between ARK CEO Cathie Wood, Twitter (NYSE:TWTR) CEO Jack Dorsey and Tesla (NASDAQ:TSLA) CEO Elon Musk — three of the biggest supporters of Bitcoin — which is moderated by Square’s (NYSE:SQ) Crypto Lead, Steve Lee.

These notable crypto names getting together to discuss “Bitcoin As A Tool For Economic Empowerment” is sure to stir up a great deal of interest in the space. This conference could easily push Bitcoin back toward $35,000.

But will it be enough to break the sideways action BTC has been stuck in for months?

We doubt it. $40,000 will likely remain the ceiling for the time being, but a real breakout is coming sooner or later.

Why? Because the long-term economic potential of Bitcoin to disrupt multi-trillion-dollar financial systems remains the same today as it was in February. The only change here is the optics.

But soon enough, these optics will change. And when they do, BTC will soar again.

The implication? If your timeline is longer than a year, all you need to be doing is buying the dip and holding. Otherwise, look to buy dips toward $30,000 and sell the rallies toward $40,000.

Right now, at this very moment, my team and I are researching the best cryptocurrencies to bring to our premiere investing newsletter and portfolio, Innovation Investor

Our picks in the crypto space will represent the cream-of-the-crop when it comes to disruptive innovation in blockchain technology. All of which have massive long-term potential.

We’ll introduce our cryptocurrency portfolio soon, but you don’t have to wait to join. Already, Innovation Investor features the best of the best stocks in a variety of world-changing megatrends, from next-generation mobility to the intelligence economy to digital advertising … and each stock could post early-Tesla-like returns, including a secret startup that’s spearheading the self-driving revolution and a company I consider my EV “sleeper” stock of the decade.

To see my entire lineup of innovative next-generation stocks, subscribe to Innovation Investor today.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It’s the theme of his premiere technology-focused service, Innovation Investor. To see Luke’s entire lineup of innovative cutting-edge stocks, become a subscriber of Innovation Investor today.


Article printed from InvestorPlace Media, https://investorplace.com/hypergrowthinvesting/2021/07/inflation-boosted-btc-previously-but-now-its-up-to-other-catalysts-to-push-it-higher/.

©2024 InvestorPlace Media, LLC