As crazy as it may sound, especially when looking at Bitcoin’s (BTC) meteoric rise over the past year, but we think there is a very strong case for Bitcoin blowing past $60,000 and $70,000 on its way to hitting $80,000. At the core of the argument is Bitcoin’s rising usage, the ever-increasing hash-rate, and the dwindling supply but there is more. Bitcoin is spreading through the economy like wildfire and on the verge of an exponential surge in demand. We thought it was crazy when Bitcoin was heading to $59,000 and now look what it’s doing.
1) Goldman Sachs To Begin Offering Crypto – Investment bank Goldman Sachs announced it would begin offering Bitcoin and other cryptocurrencies to wealthy clients in the second quarter. While not limited to Bitcoin the news is a boost to BTC as well as the entire cryptomarket. Goldman Sachs is now the second major Wall Street bank to offer digital assets and will likely not be the last. With more than $1.8 trillion in assets under management, it wouldn’t be hard for Goldman Sachs to move the Bitcoin market on its own.
2) Paypal To Start Accepting Cryptocurrency For Payments – PayPal emerged onto the cryptocurrency scene last year when it began facilitating the ownership of Bitcoin, Ethereum, and other major coins. Now the company is upping its impact on the market by allowing clients to use cryptocurrency to pay for services. Now, Checkout with Crypto will automatically appear as an option for those holding digital assets. The service will automatically convert the digital currency to fiat at checkout making it the easiest and most mainstream method of using Bitcoin that we know of. And PayPal has over 300 million clients and 20 million active merchant accounts.
3) CME Group Launches Bitcoin Mini Futures – Pending regulatory approval, the CME Group is launching a Bitcoin Mini-Future. The new contract will be worth one-tenth of a Bitcoin and allow institutions and traders another method to hedge their crypto holdings and profit from near-term price movements. The takeaway for us is that there is enough demand for the product to spur the move.
“Since the launch of our Bitcoin futures contract in 2017, we have seen steady, ongoing growth of liquidity and market participation in our crypto derivatives, especially among institutional traders,” said Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products. “The introduction of Micro Bitcoin futures responds directly to demand for smaller-sized contracts from a broad array of clients and will offer even more choice and precision in how participants can trade regulated Bitcoin futures in a transparent and efficient manner at CME Group.”
4) Chipotle Mexican Grill Gives Away Bitcoin – Chipotle Mexican Grill is embracing Bitcoin as a way to connect with younger clientele. The company is going to launch its “Burritos or Bitcoin” game next week and will give away up to $100,000 in Bitcoin with 3 grand-prize $25,000 winners. Other winners will receive burritos but that’s not the point. The point is that Bitcoin is gaining the attention of businesses and investors at all levels and is seen as a means of attracting business.
5) Mogo, Inc Launches Bitcoin Cashback Mortgage – Mogo, Inc is a Canadian fintech with its fingers firmly in the Bitcoin pie. The company already supports buying and selling cryptocurrency as well as a cashback feature it will now apply to mortgages. The new offering puts up to $3,100 in a Bitcoin rewards account for those using the app to take out a mortgage. The main attraction for Mogo users is that Bitcoin rewards have tangible value apart from the Mogo app and may appreciate in time.
6) The Technical Outlook For Bitcoin Is Bullish – Bitcoin may be approaching a top but we don’t think it’s there yet. In our view, the past few months have produced a bullish flag on the weekly chart that could take BTCUSD up to $90,000 before too long. Assuming we’re right and BTC does confirm this pattern the flagpole is a whopping $30,000 which puts price action right at the $90,000 mark.