Bitcoin At $75 000 Soon

Bitcoin closed March on the positive territory, maintaining its bullish momentum for the sixth consecutive month. This was observed only twice in its history, in 2012 and 2013. Market participants believe that the current bullish rally in BTC/USD will definitely go down in history, especially considering that many crypto enthusiasts are still determined to see BTC quotes around $100 000.

The long-term situation in the market remains the same. Large investors keep showing interest in bitcoin, anticipating further growth potential against the backdrop of soft monetary policy kept by the world’s major central banks, as well as the new coronavirus relief package to support the US economy. However, their activity is significantly constrained by the lack of clear government regulation of digital assets. American investors simply can’t take full advantage of the profits received from the BTC growth since the US Tax Service (IRS) considers digital assets, including BTC, as property and not as a currency. It means that when converting tokens into fiat money, investors will have to pay a huge tax. Clarification of taxation rules could drive a more significant number of institutional investors into the cryptocurrency market.

Also, the potential crowding out of Bitcoin by the central bank digital currencies has been widely discussed in the markets lately. Both the ECB and the Fed have recently mentioned their intent to introduce their own digital currencies. Nevertheless, many experts are confident that digital dollars and euros will never be able to compete with the decentralized Bitcoin, independent from central banks and their emission plans. National digital currencies can occupy a certain share in the stablecoin market, and, thereby, reduce the presence of USDT or USDC. But they won’t oust bitcoin. True, there is a risk that along with the introduction of national digital currencies, a legislative ban may be imposed on all BTC transactions. Last week, India proposed a bill that will ban digital money. Not only trading and mining but also possessing and holding digital assets will be prohibited. Nevertheless, even in this case, bitcoin will remain afloat simply by going into the shadow market.

Until this happens, we recommend holding long positions in BTC with an immediate target of $75 000. We should also keep in mind that in the second quarter of 2021, the global economy will be facing the consequences of rising inflation in the United States, caused by an unprecedented monetary stimulus. According to the most conservative estimates, inflation in the US could be well above 2%, which will force investors to look at safer assets like gold and bitcoin. Given that gold has been falling for the past six consecutive months, BTC seems like the obvious choice.