Special Report: Can Bitcoin Break Above 4 | UK (2024)

ThinkMarkets > Market News > SPECIAL REPORT: Is The Crypto Winter Coming To An End?


What is next for Bitcoin? The answer to this question is explained in three critical charts



Questions are being asked constantly when it comes to Bitcoin's battle with the $4000 mark. The result of this battle sets the tone for a bullish or bearish trend. Since December 14, 2018, there have been several battles between bulls and bears at the price level of $4K. In each of this battle, bulls have lost the war because, after the first attack at the $4K level, the bears have been able to gain enough strength to push the price back below this critical mark. It is in this essence, that this level has become a matter of death or life for crypto traders.

If you are a long-term investor, you will not really worry about these short-term levels. The element of risk premium is of critical importance here and I find this immensely interesting. For simplicity’s sake, consider this as a premium that one is willing to pay over the previous low which would have been a better entry price. For instance, the price of Bitcoin at the time of writing this article is trading at 3962 and the recent meaningful low was formed on March 4 when the price touched the price level of $3671. The difference between the two is your risk premium. We all know that it is extremely arduous to catch the extreme low. It is all about making an intelligent choice and buying when the price is still close enough to its bottom. For investors who are buying at these levels, they usually have a target of previous high, and for Bitcoin, it needs to be the level of 20K.


This is because there is a high chance that the next bull run has a minimum potential of pushing the price 5 times higher. That is over $100K. I personally believe that each Bitcoin can go up as much as $400K and if history repeats itself, this number is not a fool’s paradise. This is a simple math calculation: approximate percentage projection of the price which we experienced during the last bull run.

Why am I saying that crypto winter is coming to an end?

Well, before I go and talk about fundamentals, the below chart shows the percentage drop for the Bitcoin price after its major rallies. Back in 2011, the price plunged nearly 93 percent and in 2014, it dropped 84 percent. As for the most recent price crash, we have experienced the smallest price crash, 79 percent from its recent high. The most important part is that the price has started to rally back up. This argument becomes even more clear when we look at the bottom panel of this chart. The drawdown percentage curve is much higher now (shown in green circle) as compared to what happened back in 2011 (shown in red circle).

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Similarly, if we look at the monthly gains of Bitcoin and plot this on a chart (as I have done this in the chart below), it becomes clear that Bitcoin has broken its longest streak of monthly losses. This is the strongest signal for the bulls that crypto winter is no longer as cold as it was back in December or November.

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Another major bull signal comes from the weekly chart as I discussed before, the 200-week moving average (shown in green) has saved the day for the bulls. The 50-week moving average (shown in pink) is moving fast towards the price to close the distance between them. Now, if the price kisses the 50-week moving average goodbye and moves above it at that stage, all bets would be in favour of the bulls. Looking at the chart, when the price breaks above the 50-week moving average, it sends the strongest bull signal and so far it has worked really well. But this is something that we would have to wait and see. It may take a couple of months for this to happen.

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FAQs

How much will $1 bitcoin be worth in 2025? ›

BTC Price Prediction 2024-2030
YearMinimum Price / Maximum Price
2024$72,000 to $78,000
2025$95,000 to $105,000
7 days ago

How much will 1 bitcoin be worth in 2030? ›

Bitcoin (BTC) Price Prediction 2030
YearPrice
2025$ 70,586.93
2026$ 74,116.27
2027$ 77,822.09
2030$ 90,088.79
1 more row

Will crypto be around in 10 years? ›

Key Takeaways. Bitcoin, the cryptocurrency, is most likely to remain popular with speculators over the next decade. Bitcoin, the blockchain, will probably continue to be developed to address long-standing issues like scalability and security.

Can a UK company hold bitcoin? ›

Can you invest in bitcoin through your limited company? Absolutely. Buying bitcoin is no different to making any other investment via your company. With this in mind, any profit you make on investments should you sell your bitcoin will be subject to Corporation Tax.

How much will $1000 Bitcoin be worth in 2030? ›

If Bitcoin continues this pattern into 2030, the price could peak around 2029 or 2030. If Wood is correct and Bitcoin reaches $3.8 million, if you invested $1,000 in Bitcoin now, it would be worth $54,280 in 2030. This would result in a compounded annual growth rate (CAGR) of nearly 95%.

What will Bitcoin be worth in 10 years? ›

However, some experts have offered bold projections. Cathie Wood, the founder, chief executive officer, and chief investment officer of ARK Invest, believes that Bitcoin could be worth $1 million per coin before 2030, as adoption by institutional investors increases.

What will Bitcoin be worth in 2040? ›

Fidelity has been closely monitoring the development of Bitcoin more than most TradFi institutions. Jurrien Timmer, the Director of Global Macro at Fidelity Investments, thinks the value of a single Bitcoin could reach $1 billion by the year 2038 — 2040.

What will Bitcoin be worth in 2050? ›

If we draw a line connecting Bitcoin's historical lows, we get a prediction of $1.3 million by 2030 and a staggering $200+ million by 2040 and 2050, which would put its market cap at an unreasonable $4 quadrillion. By this time, this asset class will likely be matured.

How much will $50 of Bitcoin be worth in 5 years? ›

After five years, the $50 investment might be worth around $67.20. If the price of Bitcoin were to climb at a rate of 25% each year, the initial investment of $50 might be worth around $129.70.

Which crypto can give 1000x in 2024? ›

$COINDEX can become the next 1000x crypto due to the high annual yield it provides token holders. Through the newly launched smart contract, one can stake $COINDEX and generate a high annual yield.

How much will 1 ethereum be worth in 2030? ›

Ethereum (ETH) Price Prediction 2030

According to your price prediction input for Ethereum, the value of ETH may increase by +5% and reach $ 4,172.69 by 2030.

Does Bitcoin have a real future? ›

Notably, Cathie Wood, CEO of Ark Invest, predicted that bitcoin could reach an astounding $1.48 million by 2030. Obviously, the world's oldest cryptocurrency has come a long way since its first recorded price of less than a cent.

Which bank accepts Bitcoin in UK? ›

11 Best Crypto-Friendly Banks in the UK
  • Revolut.
  • Monzo.
  • Xace.
  • Cashaa.
  • Orounda.
  • Royal Bank of Scotland.
  • NatWest.
  • Nationwide.

Do you have to pay taxes on Bitcoin if you don't cash out? ›

If you're holding crypto, there's no immediate gain or loss, so the crypto is not taxed. Tax is only incurred when you sell the asset, and you subsequently receive either cash or units of another cryptocurrency: At this point, you have “realized” the gains, and you have a taxable event.

Do you have to pay tax on Bitcoin in the UK? ›

Like stocks and shares, the value (in 'normal' currency) of cryptoassets can go up or down. HMRC do not consider cryptoassets to be currency or money, or that buying or selling cryptoassets is gambling. This means that, in HMRC's view, profits or gains from buying and selling cryptoassets are taxable.

How much would 1 Bitcoin be worth in 5 years? ›

Bitcoin Price Prediction 2025-2030
Bitcoin Price PredictionPotential Low ($)Average Price ($)
202561,35795,903
202682,522115,569
2027152,837160,942
2028174,063183,485
2 more rows
2 days ago

How much will 1 Bitcoin be worth in 2024? ›

A recent report predicts that Bitcoin will reach a new all-time high in 2024. Bitcoin (BTC) is expected to reach a new record of $88,000 (€82,000) throughout the year, before it settles around $77,000 at the end of 2024, according to a new report. The cryptocurrency's current price sits at around $43,000.

How much will 1 ethereum be worth in 2025? ›

By the year 2025, Ethereum is expected to reach the maximum level of $6,500 with a minimum of $ 4,500 and an average of $5,500. And by the year 2030, it is expected that it may go up to a maximum of $20,500. The current year will witness the Dencun upgrade, which is anticipated to positively boost the value of ETH.

How much will 1 Bitcoin be worth in 2050? ›

Bitcoin price prediction key takeaways
20252050
BTC price prediction (3-year CAGR)*$58,126$5,411,729
BTC price prediction (5% annual growth)$51,266$182,286
BTC price prediction (10% annual growth)$53,708$640,095
BTC price prediction (S&P 500 historical ROI)**$54,259$843,505
1 more row
Feb 13, 2024

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