Bitcoin’s gains may not be parabolic, but the price is moving steadily higher. With BTC currently hovering at the $5,300 level, the mood around crypto has improved tremendously. Nonetheless, the bitcoin price continues to trade 75% below its peak.
A new report by Adamant Capital suggests that the smart money represented by BTC whales is in an “accumulation” phase. This chapter reflects the “last phase of the bear market.” The firm, which runs a bitcoin alpha fund, is advising value investors that now’s the time to buy. Once the BTC bulls solidify their grip, the bitcoin price is headed for the moon, the analysis suggests: “During this accumulation phase, we expect for bitcoin to trade in a range of $3,000 to $6,500 until the new bull market permanently cements the denarian cryptocurrency as a multi-trillion dollar asset class.”
The crypto market is headed to the big time where it will go toe-to-toe with assets in the capital markets. So, how do you explain last year? When the price cratered below $6,000, BTC “hodlers” got spooked and sold. Adamant Capital points to more than “70,000 bitcoin days [being] destroyed.” Conditions worsened when crypto exchange Coinbase redirected some of its BTC. This activity combined gave institutional investors “cold feet” at year-end 2018. What a difference a new year makes, and the institutions have begun to dip their toes back into the crypto waters.