Benzinga - Seeking to dispel misconceptions on the sustainability of the upward mobility in the crypto market on Monday, experts believed this was not a fake rally, but one supported by fundamentals and market sentiment. Bitcoin (CRYPTO: BTC) could pass its all-time high of $69,000 by the end of 2024 and reach new all-time highs in 2025.
Bitcoin and altcoins, including Dogecoin (CRYPTO: DOGE), Shiba Inu (CRYPTO: SHIB), Ordi (CRYPTO: ORDI) and Terra Luna (CRYPTO: LUNC) were witnessing a significant upswing, with the largest digital asset rallying to an almost 18-month high.
Michael Terpin, CEO of Transform Ventures and founder of BitAngels, believed that this was not a fake rally: “This is by no means a fake rally, as it’s supported by fundamentals and market sentiment.”
He predicts Bitcoin should pass its all-time high of $69,000 by the end of 2024 and reach new all-time highs in 2025 that are roughly 3x the price at the April 2024 halving.
Terpin also highlighted the performance of certain projects from the past two cycles, including Avalanche (CRYPTO: AVAX), Chainlink (CRYPTO: LINK) and ThorChain (CRYPTO: RUNE), which performed even better than Bitcoin in the past 30-45 days.
He predicts new projects such as Celestia (CRYPTO: TIA) will power the largest altcoin market cap in history by the end of 2025.
Pratik Gauri, the CEO of 5ire, said in times like these, projects with solid products, supportive communities and in-built resilience were likely to do well.
"The longevity and success of any project also depends on ongoing developments, adoption, and the ability to adapt to the evolving landscape. While surviving a bear market suggests resilience, continued success will hinge on sustained innovation and market relevance over the next five years," he added.
Davinder Singh, CTO at RocketX Exchange, tied the surge in Bitcoin prices to the anticipation surrounding the spot Bitcoin ETF.
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He suggested post-approval, a temporary dip is anticipated, followed by a potential climb to new records.
Lucas Lu, CEO of ByteTrade Lab, an infrastructure builder focusing on Web 3.0 innovation that includes data privacy and user empowerment, viewed the recent highlight of Bitcoin surpassing the $40,000 mark as a positive shift for investors amidst a period of market volatility.
“Bitcoin’s upward momentum offers a sense of relief to investors who have weathered the storm during the cryptocurrency’s period of decline. The climb above $40,000 signifies renewed confidence in the resilience and potential of Bitcoin, reflecting positive market sentiment," he stated.
Phillip Shoemaker, executive director of Identity.com, a nonprofit organization providing decentralized identity verification, attributed the substantial price moves to the ETF news.
But, he also pointed out the role of geopolitical instability and the rising debt levels in the U.S. and other countries, both of which are causing the traditional financial system to wobble and in turn, are driving interest in crypto as a whole.
He predicted Bitcoin would likely continue climbing and altcoins would follow.
Shoemaker expected this trend to pick up a lot of steam next quarter.
Meanwhile, analysts at Bitfinex in a research report stated Bitcoin prices hit a 21-month high as they broke above $41,000 for the first time since March last year, fuelled by hopes Federal Reserve Chair Jerome Powell will reinforce optimism next week about the possibility of rate cuts in early 2024.
The analysts added there were some signs the rally could run out of steam as the markets were beginning to run into technical hurdles.
They caution that the U.S. macroeconomic backdrop also remains strong, raising the possibility of a push-back in rate cut expectations.
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