Four Things That Could Take Bitcoin Prices Above $5000
The return of buzz, which will bring buyers back to the market. And that will take a catalyst, like the rollback of China’s ban on Bitcoin and other cryptocurrencies, which killed Bitcoin’s buzz in the first place.
The ban may be temporary, to appease international agencies and hardcore communist members ahead of the upcoming Communist Party convention, as written in a previous piece.
Another catalyst could be a financial crisis which could make Bitcoin the “safe heaven” asset, as investors flee financial assets. Like the 2008-9 financial crisis that extended across almost every asset category. Or a sovereign debt crisis.
Then there’s the prospect of a regional war, beginning either in North Korea or the South China Sea, which would disrupt global trade; or in the Middle East, where Saudi Arabia and Iran are moving closer to an open war.
And there’s the prospect of an endorsement by a major Wall Street institution, which wouled increase awareness among investors, helping the demand for Bitcoin cross the “tipping point” and reach cascade.
How likely is it that any of these catalysts will materialize? They are all likely, but it takes time.